Zero Rating VAT on Exports.

[BigDreamer]

I am looking to start exporting goods and have interest from Customers outside the EU.

I have been reading that if I am to offer the goods Ex-Works and have the buyer arrange collection, shipping, and customs, I will need to obtain proof of export from him if I want to be able to charge Zero VAT. What exactly is this proof of export that I will need? Goods will be going by Air Freight DHL.

Would it be better to provide the Export Declaration myself and have him collect it and ship it, and will the export declaration itself be enough proof to charge no VAT?

Thanks.

 

[DefinitelyMaybeUK]

I am looking to start exporting goods and have interest from Customers outside the EU.

I have been reading that if I am to offer the goods Ex-Works and have the buyer arrange collection, shipping, and customs, I will need to obtain proof of export from him if I want to be able to charge Zero VAT. What exactly is this proof of export that I will need? Goods will be going by Air Freight DHL.

Would it be better to provide the Export Declaration myself and have him collect it and ship it, and will the export declaration itself be enough proof to charge no VAT?

Thanks.

Was it this you were reading:

Vat and forwarding agents

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...

www.ukbusinessforums.co.uk

If not, have a look at the linked .gov page for what evidence is required - it didn't look like anyone could offer any other insights last time though. Perhaps @KeepMoving might be able to give some feedback on how they got along

 

[MOIC]

have been reading that if I am to offer the goods Ex-Works and have the buyer arrange collection, shipping, and customs, I will need to obtain proof of export from him if I want to be able to charge Zero VAT. What exactly is this proof of export that I will need?

If your customer is collecting the goods in Uk and arranging his own shipping to his destination country, you'll need his export documentation from his freight forwarder, showing your goods (specific details as on your invoice to him, showing you as the supplier and him as the exporter to his address abroad. Basically, proof that the goods have been shipped from UK to his destination address.

If you're arranging shipping, you need to provide the export documentation showing you as the supplier, your customer details and destination address, which should be included in the DHL document.

 

[Customs Geek]

I am looking to start exporting goods and have interest from Customers outside the EU.

I have been reading that if I am to offer the goods Ex-Works and have the buyer arrange collection, shipping, and customs, I will need to obtain proof of export from him if I want to be able to charge Zero VAT. What exactly is this proof of export that I will need? Goods will be going by Air Freight DHL.

Would it be better to provide the Export Declaration myself and have him collect it and ship it, and will the export declaration itself be enough proof to charge no VAT?

Thanks.

hi I suggest that you look at the .gov page titled Exports, sending goods Abroad and charging VAT.

under exw your customer has no obligation to export the goods so you need to make sure that they will give you all the documentation you need justify the VAT zero rating. You should also confirm that the courier/ carrier is willing to declare your overseas customer as the exporter. Legally the carrier must act as indirect customs representative and most won’t do that due to potential financial risk to them. You may therefore find you are shown as the exporter in any case as you are UK based. You could also take a deposit of the VAT and give it back when they have handed over the export proof.

You should also look at Incoterms FCA as an alternative. Your customer can still collect the goods but you take control of the export declaration . this way you can be sure the goods are exported.