Online uk business question re vat to Jersey/ Channel Islands

[kjay]

Hi I hope someone can help.
Firstly I understand that we don’t charge vat to Jersey and Channel Islands it’s zero rated.
My question is - we are a vat registered business selling clothing online. Let’s say we sell sweatshirt to a customer in the Uk the invoice shows the cost of the item/ shipping and Vat.
For the Jersey and CIsland customers it simply shows the postage and the total purchase price with vat show as zero but the price is the same as a uk customer.

Do I need to sell the item less 20% surely not but it’s not clear on the HMrC website.
I thought they would just pay the full
Price and we haven’t paid any vat so nothing to declare?
Any ideas

 

[japancool]

Do I need to sell the item less 20% surely not but it’s not clear on the HMrC website.

You can if you want to, but you don't have to. You can pocket the difference.

 

[Mr D]

As you aren't charging them 25% VAT rate then no need to sell the item less 20%.

You could sell it less 16.67% if you want - thats the VAT element. Just so long as you don't show them paying VAT.
As a foreign place outside the EU and outside the UK they tend to get annoyed at people charging them 20% extra.

Much easier to treat them like rest of the world and not charge it them in the first place.

 

[GraemeL]

Depends on what your website says. If its clear the prices are VAT inclusive (and it should be clear if you are selling to consumers) then you can be breaking the law if you charge the VAT inclusive price to a CI customer. The contract is made when you accept payment from them, so its at that point you break the law.
Your accounting system might well struggle with how to declare or not to declare the VAT element to HMRC.
If you are advertising VAT inclusive prices, then the right way to deal with it is not to charge VAT to a CI customer.

However you might want to charge additional acarriage costs.......