VAT & mainland billing addresses

[breadknife]

Hi,

If a business is based on the mainland and VAT registered, when making a sale to an individual in the channel islands (and therefore mailing the item to the islands), but with a billing address on the mainland, should the business charge VAT or not?

TIA!
Sarah

[Eric Mc]

The Channel Islands is not part of the UK nor the EU so I would imagine that a UK VAT registered orgnaisation should be able to Zero Rate their bills FOR GOODS EXPORTED to customers in the Channel Islands. You would probably need proof of export as well to justify the Zero Rating.

If the bill is for SERVICES PROVIDED, then the place of SUPPLY OF THE SERVICES determines what VAT rate is appropriate.

Edited by Eric Mc on Tuesday 15th August 12:28