VAT exemption certificate

[haigez]

Dear All,
We are a manufacturer of some medical equipments in China. In the past, when we sold our projects to NHS trusts, we paid VAT and Duty to UK custom when we import. However, we now have a client which is a charity trust. They ask if we accept VAT exemption certificate? May I know anybody can suggest how to use VAT exemption certificate? Shall we give this to custom when we import? Does this mean that we do not need to pay VAT any more?

My question might be ignorant and any suggestion will be very appreciated.

Cheers
h

 

[GraemeL]

There are certain circumstances that a charity can claim to be exempted from VAT. Here is a link https://www.gov.uk/guidance/charity-funded-equipment-certificates-notice-7016-supplement .and
https://www.gov.uk/guidance/charity...medical-and-veterinary-uses-notice-7016#sect9

G

 

[lesvatadvice]

The VAT exemptions are different applicable to imports, and UK sales. There are certain import reliefs, and you will need to identify the one you need. A separate exemption (zero-rating?) applies to the sale to a UK medical charity, and you should ask the charity to specify why they think the goods should be VAT free.

 

[haigez]

Many thanks for the reply. The trust has got their VAT exemption certificate for the goods. They asked is if we accept it. We are unsure how this VAT exemption certificate is used during the import.

 

[lesvatadvice]

I suggest that either you or your customer seek professional VAT advice, so as to clarify the position, and ensure neither party is out of pocket.