Price list of goods and items which become cheaper from 1 July
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This supersedes Notice 703 November 2013 Details of any changes to the previous version are in paragraph 1 2 of this opinion.
Some parts of this notice have the force of law under Article 30 6 of the VAT Act 1994 and Regulation 129 of the Regulations on VAT in 1995 those parts are being placed in a box as in the example -Dessous.
Proof that you get as proof of export, whether official or commercial must clearly support or identify the supplier, sender or different from the client vendor, products, a precise value, export destination, and the mode and route of the export movement.
This notice explains the conditions for zero-rating VAT on the export of goods, that is, when the goods leave the EC, it also provides guidance on what you should do when exporting goods in special circumstances delivered Goods UK to another destination in the EC are not export VAT These operations are classified as transfer You can learn more about the transfer in the notice 725 the single market.
For more information on the tax exemption of the services performed on goods for export view Notice 741A Place of supply of services.
The following changes to the version in November 2013 have been made.
Paragraph 2 8 - Which countries and territories are part of the tax zone VAT Cyprus EC has been amended to reflect areas that are included or excluded.
The fifth point in paragraph 2 9 - The countries and territories outside the EC VAT tax zone was modified to reflect changes to the French outermost regions by Directive 2013 61 EU Council which took effect from 1 January 2014.
You can access details of any changes since February 2014 from our website, go.
This notice and others mentioned are available and our website.
You should read this notice if you are a person on the VAT and you intend to export goods or if you are involved in the export of goods from the UK to a destination outside the EC as agent customs clearing, freight forwarder, carrier, warehouse, shipping or airline.
Article 146 of Directive 2006 112 provides the legal basis to exempt goods dispatched or transported outside the EC Among other things, it states that the Member States define the conditions in order to ensure the correct and straightforward application these exemptions and of preventing any evasion, avoidance or abuse the United Kingdom uses the term zero-rating rather than the exemption used in Community law to prevent confusion with the use of the exemption elsewhere in British law.
May 1 Why refer to the EC and not the EU European Union throughout the opinion.
The EU is a collective term it does not, strictly speaking, have a legal personality which speaks of Community law, it is correct to speak of the EC So we retained the term EC throughout the notice.
You will find the VAT law in the UK on the zero-rating of exports of goods for the purposes of VAT.
Article 30 6 of the VAT Act 1994 to direct exports.
Article 30 8 of the VAT Act 1994 and Regulation 129 of the Regulations Statutory Instrument 1995 2518 VAT for indirect exports.
Section 30 10 of the VAT Act 1994 where the zero-rating conditions are not met.
Further and additional legislation Legal Concessions exist to allow tax relief in particular circumstances.
Under British law of VAT, HM Revenue and Customs HMRC may include conditions to prevent fraud, evasion or abuse This review sets out conditions that must be met in full for goods exported outside EC to be zero-rated Plain English was used wherever possible, but that these conditions have legal status, legal wording was necessary.
VAT offer zero interest rate is one that is subject to VAT, but where VAT is 0.
VAT is a tax levied on goods and services consumed in the European Community when the products are exported, they are consumed outside the EC and to impose VAT on these products would be contrary to the purpose of the tax result , supply of exported goods is zero-rated, provided that certain conditions are met.
March 2 Who is the exporter for VAT zero-rating.
The exporter is the person who, whether for purposes of VAT.
Supplies or owns the property and exports or arranges for them to be exported to a destination outside the EC or.
Supplies products to a person abroad who arranges for the goods to be exported to a destination outside the EC.
Special rules exist if an export is preceded by multiple operations, see paragraph 4 January.
This means that a person or company that is not resident in the UK or has no business establishment in the UK from which the taxable supplies are made, or is an authority from beyond sea.
May 2 Can I appoint someone to manage my export transactions.
Yes, you can name a freight forwarder, shipping company, airline or any other person to handle export transactions and produce the customs export declarations required on your behalf information on customs procedures is contained in Notice 275 Customs Procedures export.
The freight forwarder, shipping company, airline or any other person designated by you, the exporter or your client needs overseas.
Take reasonable steps to ensure that the goods are as described by the exporter.
Ensure that the necessary pre or after customs formalities are completed shipping.
Make sure the products are exported on time by the exporter.
Obtain or provide valid proof of export see Articles 6 and 7 and send it to the exporter after the goods have been exported.
February 7 countries that are part of the UK VAT.
The United Kingdom consists of England, Scotland, Wales, Northern Ireland and the waters within twelve nautical miles from their coasts Although the Isle of Man has its own VAT administration, sales to the Isle of Man are treated as any other sale in the UK.
The Channel Islands are part of the customs territory of the EC, but are outside of the EC, including the UK, for tax purposes VAT Shipments of goods sent to the Channel Islands are treated as exports for the purposes of VAT and may be zero-rated if the conditions set out in paragraph 3 3 or 3 4 are met See paragraph 7 12 for information on evidence of export of goods to the Channel islands.
February 8 Which countries and territories are part of the fiscal area EC VAT.
Cyprus, including the areas of Akrotiri and Dhekelia British sovereignty to the exclusion of the UN buffer zone and the part of Cyprus to the north of the buffer zone where the Republic of Cyprus does not exercise effective control.
Germany, with the exception Büsingen and Helgoland.
Italy, except the municipalities of Livigno and Campione d Italia and the Italian waters of Lake Lugano.
Spain, including the Balearic Islands, with the exception of Ceuta and Melilla.
February 9 countries and territories outside the tax zone VAT EC.
The outermost regions of France Guadeloupe, French Guiana, Martinique, Mayotte, Réunion, Saint-Martin French Republic.
All other countries not listed in paragraph 2. 8
For the purposes of VAT direct export occurs when you send the supplier of the goods to a destination outside the EC, and are responsible both for the organization of transport yourself or the appointment of an agent freight goods can be exported by one of the following ways.
For a transmission line, airline or freight forwarder used by you and not by your client.
Indirect export occurs when your customer abroad as defined in paragraph 2 4 or its agent collects or arranges for the collection of your vendor products in the UK and takes them outside the EC including goods collected ex works see paragraph 6 6 for more information.
February 12 What happens if I supply of goods to a foreign client who is also established in the United Kingdom.
A If you provide goods for export outside the EC, and your client has an establishment in the UK where they make taxable supplies, you can zero-rate the offer as a direct export provided.
You or your representative that the goods to be sent directly to a non-EC countries.
The delivery address abroad for goods is shown on the invoice even if the invoice is issued or sent to the address of the institution in the UK, or a shared service center in the UK for administrative reasons, and.
The conditions, deadlines and the evidentiary requirements for direct exports are met, see paragraph 3 March.
B But your client or his representative that the goods to be exported outside the EC, indirect export As the customer is established in the UK, it is a person abroad for the purposes of VAT zero-rating see paragraph 4 February This means that the conditions is due to zero-rate indirect export see paragraph 3 4 are not met and the offer can not be zero-rated VAT to the appropriate UK rates.
Note that if your client does not have a business establishment in the UK offering qualifies for tax exemption as an indirect export, even if that client is subject to VAT in the UK.
February 13 What is the time of delivery of exported goods.
The time of supply determines when a supply of goods or services is deemed to take place this tax is called In most cases, the time of the offer will be the earlier of the date.
Send the goods to your customer or your client removes or.
For the treatment of deposits and progress payments see paragraph 11. 5
2 14 can I treat exports where there is no taxable supply.
Supply and export of goods that you are installing outside the EC for your client the offer takes place in the country where the products are installed.
exports outside the EC for the temporary exhibition processing or.
exports outside the EC on sale or return, the goods remain your property until they are sold.
However, you should always consider valid proof of export see Articles 6 and 7 to show us how you disposed of goods You must also report to us the products returned to the UK.
When transferring the goods of your company in the UK to your branch outside the EC you need proof of exportation as proof that you have transferred your products.
Transfer of your company's products in the UK with a branch outside the EC is not an offer, but you must declare our goods returned to the UK, and keep the details you can deduct any tax topic input related to normal rules, but do not include the value of goods transferred out in box 6 of your VAT return.
February 16 goods accidentally lost, destroyed or stolen prior to export.
You must account for the VAT on goods intended for export outside the EC that have been accidentally lost, destroyed or stolen in the UK as follows.
You provided them with direct export - no VAT is payable provided that proof of loss, destruction or theft is required, for example an application for insurance, police investigation and so on.
You provided for indirect export - VAT is payable at the appropriate rate if the goods were delivered or collected by the person abroad or his agent in the UK.
You must meet certain conditions before the supplies at zero rate of goods for export These conditions cover.
The proof is official or business you must have to prove entitlement to the tax exemption.
Time when the goods are to be exported physically EC.
Time in which you must obtain export evidence to support zero-rating.
Only exports that meet these requirements are eligible for tax exemption.
The conditions set out in the regulations and this Notice are necessary to ensure that only genuine exports are zero-rated while keeping export procedures of VAT as simple as possible.
A supply of goods sent to a destination outside the It is responsible for zero as a direct export you.
Make sure the goods are exported from the EC on time, see paragraph 3. 5
Get the official or commercial evidence of export, as the case see paragraphs 6 2 and 6 3 in the schedule.
Keep further evidence of the export operation see paragraph 6 4 and.
Comply with the law and the terms of this notice.
Deliver or mail the goods to a customer's address in the EC, including the UK, or.
Allow goods to be collected by or on behalf of your client, even though it is claimed, they are for subsequent export See paragraphs 3 6 and 7 4 for more details on the deliveries to another UK operator for grouping, consolidation, processing or incorporation before export.
A supply of goods to foreign customers see paragraph 4 February sent to a destination outside of it is responsible for the zero rate as an indirect export that.
Exports of EC goods on time, see paragraph 3 5, and.
And gives valid official gets you or commercial proof of export view as appropriate paragraphs 6 2 and 6 3 in the schedule.
Keep additional evidence of export operations see paragraph 6 4 and.
Comply with the law and the terms of this notice.
And the products are not used between the time to leave your premises and export unless expressly permitted elsewhere in this notice or any other notice from VAT.
You do not have a zero-rate indirect export the goods are.
Delivered to an individual resident in the United Kingdom, or.
Delivered to a customer that has a place of business in the UK from which the taxable supplies made or.
Issued or taken by a customer in the UK to an address in the UK.
If your export transactions does not specifically correspond to any of these categories or those listed in Sections 3 and 4 contact our service for advice before export, obtaining a written decision, if necessary .
May 3 What are the deadlines for the export of goods and obtaining evidence.
You must export the EC products and get valid proof of export within the time specified in the table below in all cases, the deadlines are triggered at the time of the offer, paragraph 2. 13
This section explains the evidence required for a supply of goods exported from the EC duty free for VAT.
For purposes VAT zero-rating, you must either official evidence as described in paragraph 6 2 or commercial evidence as described in paragraph 3 June equal weight is given to evidence of official and commercial transportation, but both must be supported by additional evidence to demonstrate that a transaction took place, and that the transaction relates to goods exported physically if proof of export is provided unsatisfactory, VAT zero-rating will not be allowed and the supplier of the goods will be liable for the VAT due see paragraph 11 February.
official proof is produced by Customs systems such goods Departed messages generated by GDM NES See Section 5 for details on how the official proof of export occurred.
It describes the physical movement of goods, for example.
Shipping certificates containing all the details of the shipment and the way he left the EC or.
International Consignment Letter of CMR International Car fully completed by the shipper, the carrier and the recipient receiving, or Freight Transport Free Trade Association own account transport documents completed and signed by the receiving client.
Further details on the subject of these documents can be found in Notice 275 Export procedures of Customs.
certificates transfer Photocopy not normally acceptable as proof of export or copy bills of lading, sea or air lading lading unless authenticated by the shipping or air line.
You are likely to have in your accounting system or some of the following items.
You must have sufficient evidence to prove that a transaction took place, but it probably will not be necessary for you to hold all the items listed.
Proof that you get as proof of export, whether official or commercial, or support must clearly identified.
The mode and route of the export movement.
vague descriptions of goods, quantities or values are not acceptable, for example, various electrical products should not be used when the correct description is 2,000 mobile phones ABC brand and model number XYZ2000 a specific value, for example, 50 000 must be presented and not excluded or replaced by a smaller or larger amount.
If the evidence is unsatisfactory, you as a supplier will become liable for the VAT due.
June 6 What proof do I need to get to justify the zero-rating of VAT when I not arrange the shipment of goods.
Usually this happens when the goods are delivered ex works If your overseas customer arranges for the goods to be collected from your premises and exported to a place outside the EC, Member States, it can be difficult for you as a supplier to obtain sufficient evidence of export as the carrier contracted to your customer abroad for this type of transaction, the standard of evidence required to justify the VAT zero-rating is high.
Before zero-rate the supply and release of goods to your customer, you must confirm the export of evidence must be provided.
Does not show that the goods leave the EC in the appropriate period or.
You, the supplier, will become responsible for the payment of VAT.
Include the obligation for the buyer to provide proof of export within the framework of the sales contract between you and your client, or.
Secure against the possibility that the buyer will fail to provide sufficient evidence to export, for example, taking a deposit from your customer equal to the amount of VAT you will be required to pay if the evidence is sent.
The deposit can be refunded when you get evidence demonstrating the goods were exported.
The evidence must indicate the products that you have provided copies have left the EC single transport document will not be enough required information shall indicate the date and itinerary of the movement and the mode of transport involved It should include the following .
A written order from your customer that shows their name and address, and the address where the goods are to be delivered.
Copy invoice showing the invoice number, customer name and description of goods.
The release date of goods in your premises and the EC.
Name and address of the carrier collects the goods; the vehicle registration number of collection products and the name and signature of the driver.
If the goods must be removed from the EC by a substitute carrier or vehicle, the name and address of the carrier, the vehicle registration number and a signature for the goods.
Name of the railway or shipping company and date of sailing or aerial number and the airport.
The information held should also include appropriate.
The name and address for the consolidation, processing or groupings.
By the time the goods leave the EC the above information may be obtained from your customer, carrier, freight forwarder or the documents listed in paragraph 6 April.
See paragraph 7 3 for products that your client intends to export in his luggage or his private vehicle.
To justify a zero-transaction, you must ensure that the proof of export.
Easily accessible to any VAT officer visit to justify the remission of your exports.
August 6 What happens if I do not hold the correct proof of export.
If you are not holding the correct proof of export, within the appropriate time, then the delivered products are subject to VAT at the UK rate appropriate See paragraph 11 2 for details of the procedures in these circumstances.
June 9 If I am a foreign client organize my own export what should I do to make sure I get the benefit of tax exemption.
Once you have collected the products or arranged for the goods to be taken to the port or airport, for export, you must provide the supplier of the goods with all supporting documents that you have to prove that the goods were physically exported you should make sure that the supplier is in possession of this evidence to enable them to meet deadlines for export.
June 10 What if I lost or misplaced evidence for export.
If you have lost or misplaced the official or commercial proof of export provided by the ship owner or carrier, in double proof of export can be obtained Export alternative evidence must be clearly marked EVIDENCE DUPLICATE export and be authenticated and dated by an official of the issuing company.
7 Evidence for zero-rated export under special circumstances.
This section covers specific export evidence you need to get by export used method in all cases, official or commercial transport of evidence, you get to be supported by the additional information referred to in paragraph 6 4 demonstrate that the transaction took place.
If you use commercial transport documents as proof of export for goods exported outside the EC.
Air - you must obtain and maintain an authentic master or house air waybill approved by the prefix and the flight number, and the date and place of departure.
Mer, you should keep one copy of the bill of lading or sea waybill stating the actual shipping shipped or when a shipping company does not issue them, sending a certificate given by an official of that company.
The international CMR provides evidence of the identity of the contracting parties when the property is transferred by road is in three parts and is completed and signed by the consignor of the goods, the carrier and the person who receives the goods Arrange for when the clients overseas for goods to collect ex-works alone CMR evidence is not conclusive that left the goods Ec, but where CMR is used as part of the evidence, it is important that the information is complete and all details legible.
Commercial goods or business exported in accompanied baggage are known as proof commercial export MIB is normally available when the goods are shipped by cargo manifest, as individual items or as part of groupage shipments Currently MIB is outside the scope of national export system and you will need to complete a non-electronic document single administrative Document SAD form C88 and follow the procedures below.
Provided the product and correctly filled SAD copies 2 and 3 are presented in MIB agent, the official certification of copy 3 of the SAD can be obtained for the following.
Exports where commercial documents are not available such as an ATA carnet has been lost.
In all these cases, the certified copy 3 of the SAD C88 form is your proof of export.
If you export goods in baggage or in a private vehicle, you must.
Arrive well before the scheduled departure time and this copy 2 and 3 marked copy to VAT SAD, with the products, the MIB agent at the location of the UK export CE for the back copies 3 to certify that goods were shipped.
Copy 3 will be given to you as proof of export for conservation in your records.
Where your client overseas brings together the products of your premises and arranges luggage or in a motor vehicle for private use, you must.
Give your customer a SAD filled with your name and VAT number in box 2 This will ensure that your client overseas does not include your supplies on a single SAD covering products purchased from a number of UK suppliers S they did this, they would be unable to provide you with an officially certified copy 3 original for your records.
Arrive well before the scheduled departure time and this copy 2 and 3 marked copy to VAT only SAD C88 form with the goods to the agent MIB export of UK spot CE The MIB agent certify the back of copy 3 to show that the goods were shipped and deliver to your customer abroad.
Send copy 3 as proof of export for conservation in your records.
If you or your client to leave the EC by another Member State SAD copy 3 C88 form will be certified by customs at the place where you leave the EC.
Full details of the MIB procedures are given in the notice 6 goods in baggage.
If you use a freight forwarder, shipments from often multiple shippers can be grouped into a single charge, known as cargo name groupage or consolidation, the freight forwarder must keep a copy of the original bill of lading, waybill sea or air waybill and all shipments the charge should be indicated on the container or vehicle manifesto will be issued a certificate by the shipping forwarder, often supported by a certified copy of the original bill of lading, a waybill sea or air waybill house where such shipments are exported, the freight is generally represented by the sender in the shipping documents.
Shipping certificates are usually produced by packers and consolidators involved in road, rail and maritime groupage shipments when they receive a single transport document authenticated with the carrier's shipping certificate is an important document, should be sent as soon as the goods have been exported from the EC.
The shipping certificate must be original and authenticated by an official of the issuing company unless it is the computer, on a one time, as a by-product of the accounting system of the issuing company.
A shipping completed certificate will help you meet the evidentiary requirements set out in paragraph 1 June.
Although the shipping certificate can be in any format, it must be an original and usually contain the following information.
A unique reference number or reference of the transmitter case.
The name of the exporter and VAT number, if known.
The name of the export vessel or aircraft, and flight number prefix.
A full description of the exported goods, including quantity, weight and value.
The bill of lading or air waybill number if applicable, and.
The vehicle identification number, container or rail car.
Goods exported by post may be zero-rated if they are direct exports and you have the necessary evidence of the display to an address outside the EC.
Proof of posting packets letter post or by air up to 2 kg.
A certificate duly completed form of display, presented with the goods for export, and stamped by the Post Office will be your proof of export forms are acceptable.
Form C 132 E for single or multiple packaging taken to the blank forms post office can be obtained from our Hotline or our website.
P326 form available from the Post Office and used for individual packaging taken to the Post Office.
A display certificate for international mail, or Manifest Royal Mail Collection, available from Royal Mail a commercial adviser for use by customers using their service corporate collections, where Royal Mail collection driver signs certificate.
You can find more information on international Royal Mail services on its website.
Parcelforce Worldwide operates a range of international parcel services If you use one of these services to a non-EC destination, you will use a barcode label service and customs declaration The customs declaration may be either a shipping package paper or an online version of the information required for both formats is the same version Whatever you use, you must be aware of the following points.
A duly completed customs declaration is required for each parcel, even if you send a multiple sending of the item each package can be inspected by Customs on an individual basis.
A clear and complete description of all the items contained in the package is required, including the quantity, weight and value of products.
If you arrange to collect the parcel from your premises, the pilot collection will provide a shipping package for you to complete if you have not already completed the statement and then sign the receipt copy If you have completed and printed your statement online, the collection pilot will sign your receipt online or manifesto.
If the package is taken to a post office received a copy of the full shipping package will be given to you, as well as written evidence of shipping the Post Office system Smartpost This will show the delivery address to the abroad, the date of shipment and unique batch number that corresponds to the single shipment number on your invoice shipping pack You must keep both proof of dispatch and receipt of the customer.
In addition to statements of individual plots described above, Parcel account customers from around the world who regularly exports also have two potential sources of additional information Multicast packages for export.
Worldwide Despatch Manager WDM online users can print a manifest, which lists all the packages shipped.
All statements of individual packages and is the manifesto or statement listing each export provide proof of export VAT.
You will find more information on Parcelforce Worldwide Services International, on their website.
Courier and parcel operators fast specialize in sending small shipments to overseas destinations within guaranteed deadlines.
A Operators who do not issue separate certificates shipping.
Most courier and rapid parcel operators do not issue separate certificates shipping.
The bill for moving small shipments for export to the EC, which regularly carries details of air waybill numbers unique to each shipment is normal commercial proof of export Moreover, many express companies are able to offer Service monitoring and traceability via their websites where the movement of shipments can be traced to the final destination This information can be printed and can also be used to confirm that the goods leave the EC.
B operators who use the system based on a pack. Despatch
Some companies still use a documentation system based on accounting data containing Despatch pack, an export customs declaration and copies of receipt of an air waybill or the house waybill These packages are delivered to customers complete for each shipment for export.
Goods exported outside the EC must be fully and clearly described with the value indicated on the export declaration A Despatch pack must be completed for each foreign address of the recipient and the driver collecting parcels approve receipt of copy and return it to the sender This and the statement issued by the express operator, listing each export item, provide proof of commercial export.
C. The use of more rapid business mail packages.
Due to the complexity of the movement of shipments in the express mail package environment, there is often more than one company involved in the handling and final export of commodities You as a UK supplier can not be certain that the rapid parcel courier company has made the export declaration to customs therefore, it can be difficult to get official proof of export, leaving you to rely on the evidence of commercial export as described above If the operator made a statement in bulk when exporting goods through another member State, it may not be possible to print a copy trip 3 for individual shipments of the SAD referred to paragraph 3 July.
In these circumstances, you should use commercial export evidence, usually completely filled transport documents.
However, if you, as a supplier, are certain that the export declaration was made by a rapid specific corporate mail packages you can rely on either commercial or official evidence pursuant to paragraphs 6 2 and 3 June.
A customer overseas organize export by mail.
If your client overseas that the goods exported by mail, you must know what evidence they will provide export for you to zero-rate offer more information about what you should do in paragraph 6 June .
railway contractors providing services by rail for packages and full loads.
If you intend to export parcels by railway, you need to establish what the export of evidence will be made available by the railway entrepreneur This will normally be a consignment note as a 5-party PIM Piex - international consignment note, copy 4 is the exporter's copy and the receipt of the goods.
These forms and the receipted account railway export declaration listing each provide your export evidence to VAT.
railway contractors providing services for the transport of full loads in trailers, containers and swap bodies and interchangeable containers are handled by intermediaries who use their own car documentation full loads in the cars use the Convention 5 international part of Goods by Road to iron car ICD Note contains the uniform Rules concerning the international carriage of goods by rail.
In all cases, the copy of the consignment with an approved exporter railway stamp your proof of export.
For goods exported under the grouping system, you must get a shipping certificate see paragraph 7 April signed by the packer showing a full description of products packed for export - including the quantity, weight, value, the destination, and so on.
For simple shipments, you must obtain a commercial proof of shipment by road, rail, sea or air and a certificate of deposit or other proof of export when exported by other means.
Auctioneers act in several ways, it is important that you check with the auctioneer prior to selling your goods they act in their own You can find more information on the role of auctioneers in Notice 700 VAT Guide notice 718 2 Auctioneers VAT scheme.
You can zero-rate your offer on condition that you get an export certificate of the auctioneer, as provided for in paragraph 12 2 or paragraph 12 3 in the three months following the date of the auction The auctioneer shall hold valid proof of export for goods.
If you sell products through an auctioneer acting in their own name, the products are considered to be supplied to the auctioneer and must not be zero-rated by you as an export The auctioneer will be able to zero-rate the Onward provides the normal way.
July 10 Exports of customs, excise warehouses or tax.
A warehouseman who holds a valid commercial transport evidence that the goods delivered to the warehouse were exported can provide the registered owner of the goods with a signed and dated document certifying export It must include the following information.
order number, invoice number and date of the transaction.
Details of stock exported description, quantity, value, and so on.
Name of the export vessel or flight prefix of the aircraft and the number.
Lading or air waybill number as appropriate.
The identification number of the container railway wagon or if used, and.
July 11 supplies the Foreign and Commonwealth Office FCO.
You can zero-rate the supply of goods ordered by the British embassies, high commissions and diplomats abroad who come to FCO for export through diplomatic channels within three months of the time of supply You as a supplier must keep a separate record of each transaction.
For proof that the offer was made to a person abroad, you must be able to identify the destination of the goods So keep documents containing such information, for example the order You should also get a acknowledged the FCO in three months from the date of supply of goods the certificate may be on a copy of the sales invoice or a detailed list, you need to bear in support of your application for tax exemption .
You do not have to zero-rate the supply of any goods ordered by and delivered to the FCO for the stock or the overall distribution.
excise goods or goods subject to customs controls such as restricted goods exported to the Channel Islands still need a SAD declaration form C88 This can be done with the NES national export system.
In the case of products not subject to customs or excise controls one of the following reporting procedures can be used.
A statement by the NES bulk transmission line supported by each consignment and customs declarations CNCD or.
Further details can be found in Notice 275 Export procedures of Customs.
In the ferry ports of the south coast with a combined CNCD a comprehensive support program of the exported goods can be used instead of the SAD and the sea waybill to the manifested cargo.
A NCCD can be on a commercial document or a quasi-DSS approved standard.
Export evidence for the goods sent to the Channel Islands consists of the following elements, as appropriate.
official proof of export product NOA see section 5.
Goods shipped by air - an authenticated master air waybill or air waybill house see paragraph 1 July.
Goods transported as cargo in the luggage - a certified copy of the SAD 3 Customs Form C88 see paragraph 7 3.
Goods shipped by a freight - a shipping certificate issued by the freight forwarder, see paragraph 7 4 or a certified copy of the CNCD.
Goods shipped by fast parcel or courier service - proof pursuant to paragraph 7 6 or.
Goods shipped by shipping companies of the south coast - a certified copy of the CNCD as described above.
Where you send goods by road via Dover for example, through the EC before final export, or when moving goods from the UK to an airport in another Member State before the final export is export by a member State of the EC.
If you export to non-EU countries via other Member States, you will need either an official proof of export for the purposes of VAT, see paragraph 6 2 or proof of commercial transport 3 that the paragraph 6 goods leave the EC to justify the zero-rating of supplies.
Proof of export procedures described above for exports from other Member States also apply to goods carried by the Channel Tunnel.
The provisions described in paragraph hedging income 7 7 carried on the transport services by rail through the tunnel.
There are goods in luggage facilities at both the international terminal at Waterloo for foot passengers and Ashford inside Clearance Depot for car and coach passengers reach the tunnel in Cheriton.
Two extra-statutory concessions exist that allow the zero-rating of VAT on supplies of goods in specific circumstances Further details can be found in the Notice 48 extra-statutory concessions.
A Can I zero-rate the supply of products in my duty airside or duty free shop.
ESC January 9 allows zero-rate the supply of goods to be carried in the personal luggage of passengers flying directly from the UK in a non-EC countries.
If you use a service or duty free shop at the airport, you can zero-rate the supply of goods for immediate export Travelers departing flights to destinations outside the EC Although passenger for which exports goods, it is the retailer who is considered the exporter for the purposes of VAT and therefore must prove that the products were exported.
For zero-rate offer, you must provide proof of sale to a passenger intending to export to a third country.
The traveler is starting directly to a destination outside the EC, and.
We must be able to verify the transaction acceptable evidence that the sale is to a passenger heading is obtained from the airplane boarding card or a travel document This clearly shows the names of passengers, the date travel and flight number destination information of boarding cards or travel documents presented by passengers entitled to be kept by retailers in connection with proven export.
If you, as a retailer, are not sure of the acceptability of the evidence you propose to use, you must contact our helpline Large companies controlled by large LBS business services should contact their responsible customer relationship Any agreement on the acceptability of other evidence should confirm being written.
B If the customer returns the defective goods Can I zero-replacement products.
If, after the sale, the customer returns the goods as defective and you the retailer must replace if you charge VAT on the value of alternative products depend on their final destination if the replacement products are to be exported, they can be tax-free, subject to normal export regulations if they are delivered to an address in the UK or EC member State sale to original zero rate should be canceled and the offer is subject to VAT at the appropriate rate.
You can find information about when you can zero-rate supplies to customers registered for VAT in another EC Member State in Notice 725 of the single market.
Statutory additional concession ESC September 2 allows vessels on commercial trips within the territorial waters of the United Kingdom or within the limits of a port to receive certain types of free marine fuel sold.
You can zero-rate supplies such as ships providing.
You get to the person to whom the marine fuel must be provided a written statement that the goods are intended to be used as stores for non-private trip.
You get a written confirmation from the master, owner or authorized agent of the ship stating that the fuel is only for use on a named vessel.
Fuel is sent directly to the vessel or addressed and delivered to the captain of a ship named c o the shipping agent or online, and.
You have a receipt confirming the delivery of the fuel on board the vessel, signed by the master or any other officer.
The concession described above relates only to fuel supplies, which were zero-rated before July 1, 1990, does not apply to gasoline, ultra low sulfur diesel or ULSD lubricating oil.
There are a number of export schemes for retailers that sell products for export by private individuals.
The retail export scheme allows participating retailers to refund VAT on products purchased by customers entitled You must refer to the conditions set out in the notice 704 retail export VAT.
You can zero-rate the supply of a new or a motor vehicle by hand for export by your client in certain circumstances, you must refer to the conditions set out in Notice 707 VAT personal export scheme.
The system allows boats Boat Sailaway exported to final destinations outside the EC to be zero-rated for VAT You can find more details in the notice 703 2 Sailaway boats supplied for export outside the EC.
9 February retail Exports shipped as effects of transportation or household.
If you, as a retailer, to arrange for the goods to be exported outside the EC, you can zero-rate offer provided that all the conditions in paragraph 3 3 are fulfilled.
If your client overseas arranges for the export of goods outside the EC, you can zero-rate offer provided that all the conditions in paragraph 3 4 are met.
10 stores for use on board ships, aircraft or hovercraft to destinations outside the UK.
Stores are products for use in a vessel, aircraft or hovercraft and understand.
The goods for the execution of repairs or maintenance, for example, lubricants, spare and replacement parts.
Goods for retail sale to the passengers on the flight journey or who intend to use the stores on board only.
You can zero-rate supplies of goods classified as stores under section 10 1 for refueling and supply ships and aircraft providing.
They are on a journey or a flight with a non-private purpose and with a final destination outside the United Kingdom See paragraph 8 2 for details of extra statutory concession ESC covering the supply of marine fuels to ships for travel within the territorial waters.
They are shipped from the UK within three months of the offer.
The conditions set out in paragraph 10 4 are met.
March 10 Deliveries to shipping companies registered etc.
If you make supplies to transmission lines or VAT registered aircraft operators that they can choose to have.
All supplies, including goods for shipment in stores on their ships or aircraft, delivered to them the circumstances, you have to charge VAT at the appropriate rate Maritime or airline may deduct input tax subject to the normal rules The subsequent transfer of the products from their premises to the ship or aircraft for the stores do not then offer to VAT.
supply stores made directly abroad can go zero-rate the supplies provided that the goods qualify for relief stores under paragraph 10 2, and the conditions of paragraph 10 4 are met.
When you receive an order for goods to be shipped to stores, you must ensure that you receive clear instructions on how to deal with the offer.
April 10 conditions for supplies of zero-rating to foreign ships and aircraft.
Unless these conditions are met, there is no right to tax exemption and you must account for VAT at the appropriate UK rates.
You can zero-eligible supplies of goods to foreign ships and aircraft providing.
The person to whom the goods are supplied is the end user, eg ship's captain.
The person to whom the goods are to be provided declares in writing that the goods are intended to be used as stores for a trip or flight to be made in a non-private purpose.
You get and keep a written order or confirmation given by the master, commander, owner or authorized agent of the ship or aircraft This must include a statement that the goods are only for use as stores on a named vessel or aircraft entitled to receive duty-free shops for the trip in question, which is a final destination outside the plane in the UK by making international flights are eligible to receive without VAT stores even if the plane made one or more stops in the UK during the flight.
With freight forwarders to consolidate and direct delivery to the ship or aircraft, or.
Addressed and delivered to the captain of a ship named c o transmission line or agent.
You get and hold a receipt confirming the delivery of the goods on board the ship or aircraft, signed by the master, commander or other responsible officer of the ship or aircraft can accept such a receipt signed by an official of the relevant airline However the airlines using the facility must obtain prior written approval from HMRC They must confirm that the signer is able to provide the receipt to his knowledge of the details of the flight and the airline will maintain documentation allowing the HMRC staff to verify entitlement to relief.
You have an export certificate as described in paragraph 7 10, where your supplies are made directly from a non-operated warehouse or you own a qualifying ship or aircraft rating of notices issued by the warehouse normally used for this purpose.
Please note the conditions for tax exemption in the following circumstances.
Where there is a supply chain, intermediaries must take into account the VAT at the appropriate rate.
If you supply goods to a landside storage tank you can not zero-rated supply unless your client is the exporter of the goods and that you have the necessary evidence.
May 10 Supplies for sale in the stores of vessels and aircraft and ships Slop coffers.
Paragraphs 10 February 10 3 and 10 4 are applicable to goods destined for sale in the stores of vessels, etc., even if there may be no taxable supply at the time of shipping, for example the transfer of own property, supply or sale return Conditions When the goods were shipped on a foreign ship in progress or aircraft, any subsequent sale of the products will be a supply outside the UK and there will be no another responsibility of VAT unless again landed in the UK see paragraph 10. 6
VAT is payable on goods sold to a ship for a trade voyage or aircraft on a domestic flight.
Where stores are provided and by following these re-landed in the UK are considered imports and you must follow the procedures of VAT Notice 702 imports.
July 10 Supplies mess and canteen stores for HM ships.
You can supplies at zero rate of goods for use as a mess and canteen stores on HM ships are about to leave for a foreign port or a trip outside the territorial waters of a fortnight UK the products must be controlled for general use on board by members of the ship's company commander must certify each order.
Deployment of the United Kingdom for service abroad on the date calling at a foreign port or a trip outside the territorial waters of the duration over a fortnight and these shops are for use by crew members during deployment.
You must deliver the goods directly to the ship for loading on board, get a receipt to keep them on board and to support your request for tax exemption.
If you provide duty-free goods on sale or return mess on ships HM you can not the zero-rate VAT when they are sent to the ship, because there is no taxable supply at that time the taxable supply occurs only when the products are adopted, it is when the customer pays for goods or otherwise desire to keep; or at the end of 12 months or such shorter period that you agreed to buy the goods or returned see reviews 700 VAT Guide You are responsible for ensuring that the damage you immediately inform when the adoption of the goods If the adoption took place occurs when the ship is in the territorial waters of the UK supply is taxable, if outside there is no offer to VAT commanders of Her Majesty's ships provide suppliers with the information.
When there is no offer at the time of delivery on board, VAT is payable at the appropriate rate on the sales of products in canteens and shops on board Her Majesty's ships in the ports of the United Kingdom or cabotage trips If the vessel is outside territorial waters of the United Kingdom while sale of goods is outside the scope of VAT and are taxable only if the goods are re landed in the notice UK 700 VAT Guide explains how to handle this in your records and accounts.
Notice 700 The VAT Guide contains details of the records and accounts that you must keep Additionally, you must keep proof of export as described in sections 6 and 7 It is important that you follow the accounting instructions explained in this section if you do not have proof of export from the EC to date.
If you do not follow these rules, you will be responsible for assessing the VAT due on supplies and may incur default interest and financial penalties accordingly.
11 February How do I pay my accounts if I do not receive proof of export or if the goods are not exported.
If you make a zero-export you can supply your records when the products are delivered to your customer, but if you do not.
Obtain and maintain required evidence of export or.
Make sure that the goods were exported in the period applicable to the supply.
And the offer would normally nominal standard in the UK, you must account for VAT accordingly.
You need to change your VAT records and pay VAT on the taxable portion of the invoice amount or the consideration that you received for a VAT rate of 20 percent VAT element would be calculated at 1. 6
When you change your VAT records, you need to make an input equal to the tax on the goods concerned on the side of VAT PAY your VAT account You must include this amount in box 1 of your VAT return for the period in which the relevant deadline expires.
March 11 What if the goods are exported or I get export evidence after taking into account VAT.
If the products are exported and you get or later export evidence, you can zero-rate supply and adjust your VAT account for the period when you got proof This is provided that the goods are not used UK before export, unless expressly authorized HMRC and in the case of indirect export see paragraph 2 11 - the goods have been provided to a person abroad as defined in paragraph 2 April.
April 11 How do I account for exported goods, which are then returned damaged.
Where export damaged goods after shipping are relanded UK, they must be declared to HMRC If you or a member of a rescue organization resell the goods, the seller must take into account the VAT rate the appropriate United Kingdom, on the sale price.
May 11 How do I account for VAT on deposits and progress payments.
Deposits and progress payments are partial payments to the total cost of an offer received before completion and have the same responsibility for VAT as the final delivery If the final offer should be zero-rated as an export, such payments may also be zero -rated .
However, if the goods are not exported or eventually you get valid proof of export, you must account for VAT on the total value of the offer, including deposit payments, progress or stage on your next VAT return.
January 12 Example of a shipping certificate for embassies, high commissions, etc.
VAT Notice 703 Export of goods from the United Kingdom, Notice, export, goods.