VAT Exempt selling to customers, an Accountant needed...
Discussion
My usual accountant has disappeared and f
ked off on holiday until next Tuesday and I have been asked something unusual.
Client wants a couple of products off me.
Usually it would be charge the VAT and they can do with as they wish.
However this one wants the products at their property in Switzerland, so they are asking if the are VAT exempt, this is something I have no clue of.
Obviously its easy for me to write up a custom invoice and charge them exc VAT and ship it out there, noting down on this months records that this classifies as 0% VAT on the sale.
However is that correct or is HMRC and my accountant going to shout at me?
ked off on holiday until next Tuesday and I have been asked something unusual.Client wants a couple of products off me.
Usually it would be charge the VAT and they can do with as they wish.
However this one wants the products at their property in Switzerland, so they are asking if the are VAT exempt, this is something I have no clue of.
Obviously its easy for me to write up a custom invoice and charge them exc VAT and ship it out there, noting down on this months records that this classifies as 0% VAT on the sale.
However is that correct or is HMRC and my accountant going to shout at me?
Eric Mc said:
Are you billing him at his Swiss address?
Are the goods being sent directly to his Swiss address?
She has not yet decided on the billing address, I suspect that is going to be an issue. As we only have Sterling accounts and I bet they will need to pay in CHF to make it completely legit, their problem with the conversion, not mine to be honest.Are the goods being sent directly to his Swiss address?
Shipping address will be the Swiss address, the goods will go through the UK, but never be offloaded or used here.
The thing is, it's not a sale to another EU country, it's an export. This makes it a bit more complex as regards paperwork.
Sales to EU countries can be made at zero VAT provided you have the buyer's EU VAT number (and it's not the UK
).
Outside of the EU, yes, it's definitely VAT Exempt, but you need export documentation to go with it.
As far as I know, it's fine to be paid in GBP.
Sales to EU countries can be made at zero VAT provided you have the buyer's EU VAT number (and it's not the UK
).Outside of the EU, yes, it's definitely VAT Exempt, but you need export documentation to go with it.
As far as I know, it's fine to be paid in GBP.
Super Slo Mo said:
The thing is, it's not a sale to another EU country, it's an export. This makes it a bit more complex as regards paperwork.
Sales to EU countries can be made at zero VAT provided you have the buyer's EU VAT number (and it's not the UK).
Outside of the EU, yes, it's definitely VAT Exempt, but you need export documentation to go with it.
As far as I know, it's fine to be paid in GBP.
If I use a managed warehouse and their own couriers (Fedex/DHL) I don't usually get involved with the export myself, so I guess its a case of asking for a copy no?Sales to EU countries can be made at zero VAT provided you have the buyer's EU VAT number (and it's not the UK
).Outside of the EU, yes, it's definitely VAT Exempt, but you need export documentation to go with it.
As far as I know, it's fine to be paid in GBP.
Ok, yes. I think that's the case. I don't do enough exporting to be sure at the moment, but now you mention it, FedEX/DHL will cover all the paperwork requirements.
A copy of the paperwork from them won't hurt.
However, thinking about it some more, I'm not sure where you stand with regards billing the UK office for an export. It's probably ok, but if I were you, I'd not take my word for it. You could always try phoning HMRC.
I have a load of notes on the subject as I had to do a short course on it a while back, but they're in my office and I'm not until next week.
A copy of the paperwork from them won't hurt.
However, thinking about it some more, I'm not sure where you stand with regards billing the UK office for an export. It's probably ok, but if I were you, I'd not take my word for it. You could always try phoning HMRC.
I have a load of notes on the subject as I had to do a short course on it a while back, but they're in my office and I'm not until next week.
Exports outside of the EC are not VAT Exempt, they are zero-rated.
All the OP needs is to obtain evidence of export, unless you are selling restricted goods requiring licenses etc, normally the shipping documentation showing the delivery address in Switzerland will suffice, and he can then zero rate the supply.
There is absolutely no problem with invoicing in GBP.
When supplying outside the EC, whether the customer is an individual or a business is immaterial.
All the OP needs is to obtain evidence of export, unless you are selling restricted goods requiring licenses etc, normally the shipping documentation showing the delivery address in Switzerland will suffice, and he can then zero rate the supply.
There is absolutely no problem with invoicing in GBP.
When supplying outside the EC, whether the customer is an individual or a business is immaterial.
sgrimshaw said:
Exports outside of the EC are not VAT Exempt, they are zero-rated.
All the OP needs is to obtain evidence of export, unless you are selling restricted goods requiring licenses etc, normally the shipping documentation showing the delivery address in Switzerland will suffice, and he can then zero rate the supply.
There is absolutely no problem with invoicing in GBP.
When supplying outside the EC, whether the customer is an individual or a business is immaterial.
taAll the OP needs is to obtain evidence of export, unless you are selling restricted goods requiring licenses etc, normally the shipping documentation showing the delivery address in Switzerland will suffice, and he can then zero rate the supply.
There is absolutely no problem with invoicing in GBP.
When supplying outside the EC, whether the customer is an individual or a business is immaterial.
Gassing Station | Business | Top of Page | What's New | My Stuff