Vat and forwarding agents

[KeepMoving]

We are seeing a large increase in customers placing orders. It asking for vat removal but shipping to a UK forwarder for onward delivery overseas. Can anyone tell me the correct way to proceed and anything we need to acquire ie proof of final destination before selling without VAT or so we sell with VAT and they have to claim it back once left UK? Thanks

 

[DefinitelyMaybeUK]

We've avoided having to deal with this scenario for EU destinations since Brexit (so far) as always ship direct. But prior to Brexit, for EU consumers it was a non-issue as they would of paid VAT anyway.

However, worth a read of this:

VAT on goods exported from the UK (VAT Notice 703)

How and when you can apply zero-rated VAT to exported goods.

www.gov.uk

Specifically section 2.3 and 2.4 (definition of overseas person)

Whether you charge VAT hinges on whether your customer is private individual or a business person.

If business and you don't charge VAT, then you need to get suitable evidence of export otherwise you will be liable to HMRC. See section 6.6 for what evidence is required. There's a suggestion of taking a deposit equal to VAT, pending receipt of suitable evidence, which might be a solution.

What like to hear other views on this too

 

[KeepMoving]

This is what I was thinking Is proof of export and then a 20% surcharge is refunded. Anyone else any feedback?

 

[DefinitelyMaybeUK]

This is what I was thinking Is proof of export and then a 20% surcharge is refunded. Anyone else any feedback?

...but do your potential customers fall into the required overseas person/business definition or are they retail?