VAT on goods sent to non EU countries

[Leesalad]

I sell sports goods online to private individuals in the UK, EU and non EU countries. I am in the process of preparing my first VAT return.

Are the goods I sell and send to non EU countries outside the scope of VAT? If so does the income I receive from them need to be included in my VAT return and can I claim back the VAT I initially paid on the goods from my supplier (wholesaler)?

 

[johndon68]

There is no VAT on those sales but my understanding is that the value of the sales should still be accounted for on the VAT Return. This does not affect your ability to reclaim VAT on the purchase.

John

 

[David Griffiths]

The goods sent outside the EU are zero rated, and not outside the scope of VAT. That means, as John says, that the value of the sale is included in the outputs on the VAT return, but you can claim the VAT on the original purchase.

Outside the scope, exempt and zero rated all mean that there is no VAT chargeable but they aren't interchangeable.

 

[turnarounduk]

I know your probably only moving small value items, but be aware that after a amount of 250,000 you have to file a intrastat report.

Its like a vat return but you dont pay, its just for information purposes.

Thanks
Lee

 

[Click2Post.co.uk]

Some helpful information in this thread.

I'm in the same boat, my only problem is proving they have been exported?
We would only be able to show Royal Mail docket for our contract Airmail. Should this be enough?

Also, for Intrastat, is that £250,000 in exports non-eu per year?

 

[David Griffiths]

Evidence for exports is dealt with in HMRC notice 703 and postal exports dealt with at this link.

Intrastat is not for exports outside EU. It's for dispatches (that's exports to other EU states in ordinary language) or arrivals (imports from EU) The threshold for completion is £20k for dispatches and £600k for arrivals. Business Link have a summary here

 

[turnarounduk]

Thanks for that Dave, it was a bit of a grey area for me.

Thanks for clarification, i was looking on the HMRC website.

Lee

 

[Leesalad]

So just to clarify then:

1. VAT is not payable on the sale of items sold to customers in non EU countries

2. You can reclaim the VAT initially paid on the said items when they were purchased from my supplier (my wholesaler)

Please can someone confirm the above for me

 

[Scalloway]

1. Yes
2. Yes