This notice explains the conditions for zero rating VAT on an export of goods, that is, when the goods leave the UK or EU. The B2B general rule for supplies of services is that the supply is made where the customer belongs. A supply of goods to an overseas customer (see paragraph 2.4) sent to a destination outside the UK or EU is liable to the zero rate as an indirect export where: and the goods are not used between the time of leaving your premises and export, except where specifically authorised elsewhere in this notice or any other VAT notice. How soon you need to start the application process and what you need to do depends on the type of goods you’re exporting. For B2B, only the charge for the admission to an event, and any services ancillary to admission, are taxed at the place of where the event takes place. If you supply training services to foreign or overseas governments your supply will be zero-rated provided both of the following conditions are met: A foreign or overseas government includes: Zero rating only applies to the supply of the actual training and does not extend to any associated services which are supplied separately, such as accommodation or transport. If your overseas customer arranges for the goods to be exported by courier you should find out what proof of export they will be providing to allow you to zero rate the supply. If United Kingdom is selected as the country, you will be charged VAT. I guess the same would apply if it was the Canaries or Channel Islands I was purchasing services from. For information on the VAT liability of supplies see section 29 of VAT guide (Notice 700). Transfer of goods from your UK business to a branch outside the UK or EU is not a supply but you must declare to us any goods returned to the UK, and retain the details. This is not limited to the supply of admission as it is for B2B services described in paragraph 9.2. If your customer does not have a business establishment in the UK the supply is eligible for zero rating as an indirect export even if that customer is VAT registered in the UK. Plain English has been used wherever possible but as these conditions have legal status, some legal wording has been necessary. Examples include: Amongst the types of service not included as valuation services or work on goods are: For information about passenger transport see VAT Notice 744A: passenger transport and for freight transport see VAT on freight transport and associated services (Notice 744B). Note that VAT does not apply to the Channel Islands. We use this information to make the website work as well as possible and improve government services. Such services can only be subject to tax in that country. However, you must still hold valid proof of export to demonstrate how you disposed of the goods. The next 3 bullets have the force of law. In addition, many express companies are able to offer a track and trace service via their websites where the movement of consignments can be traced through to the final destination. Since 1 January 2013 the place of supply of a B2C long-term hire of means of transport is made where the customer belongs, unless it is a long-term hire of a pleasure boat that is put at the disposal of the customer at an establishment of the supplier. This covers all banking, financial and insurance services. The following table has the force of law. You may zero rate your supply provided that you get a certificate of export from the auctioneer, in the form set out in paragraph 12.2 or paragraph 12.3 within 3 months of the date of the auction, if you sell goods through an auctioneer who: The auctioneer must hold valid evidence of export for the goods. If the place of supply of your services is outside the UK or EU you should not charge UK VAT but, as you may need to account for the local tax, you’ll need to consider the tax rules of the country into which you are making your supply. Where this applies, your services are supplied where your customer belongs and so are outside the scope of VAT. You should give your UK VAT registration number and confirm you belong in the UK to your supplier as evidence that they’re not liable to account for any UK VAT due. You must distinguish between a supply of staff and a supply of other services which you make by using the staff yourself. More detailed guidance has been published by the EU Commission in the form of an Explanatory Note. Stores are goods for use in a ship or aircraft and include: You can zero rate supplies of goods classed as ‘stores’ under paragraph 10.1 for the fuelling and provisioning of vessels and aircraft providing: If you make supplies to VAT-registered shipping lines or airline operators they can choose to have: When you receive an order for goods to be shipped as stores you must make sure that you receive clear instructions on how to deal with the supply. To correctly calculate the figures for the VAT Report (Summary), you must configure your tax codes. The evidence you obtain as proof of export, whether official or commercial, or supporting must clearly identify: Typically this occurs when goods are supplied ex-works. Under UK VAT law, HMRC may specify conditions to prevent evasion, avoidance or abuse. Evidence of export for goods sent to the Channel Islands is made up of the following (as appropriate): Where you send goods by road through EU member states (for example to Dover and across the EU before final export), or where you move goods from the UK to an airport in an EU member state before final export, this is an export through an EU member state. If a service is provided to multiple specific sites in different countries it may still be directly related to land. If you've appointed someone to deal with UK customs for you, they'll make the declaration and get your goods through the UK border. In all cases the official or commercial transport evidence you obtain must be supported by the supplementary information set out in paragraph 6.4 to show that the transaction has taken place. This describes the physical movement of the goods, for example: More details on the purpose of these documents can be found in Notice 275: customs export procedures. The freight forwarder, shipping company, airline or other person appointed by you, the exporter, or your overseas customer must: The UK consists of England, Scotland, Wales, Northern Ireland and the waters within 12 nautical miles of their coastlines. Certificate(s) of posting numbers held by me……………………………………………. Payments for their services are often described as commission. For B2C supplies the scope of supplies taxed where performed is far wider and includes services relating to cultural, artistic, sporting, scientific, educational, entertainment and similar activities. Effective use and enjoyment takes place where a recipient actually consumes services irrespective of the contractual arrangements, payment or beneficial interest. The client is a registered health professional, enrolled on the appropriate statutory registers and will be providing services in which they are registered to practice. Customs declarations using the National Export System (NES) and the New Computerised Transit System (NCTS), 7. If you’re a non-UK supplier of B2C intermediary services arranging a supply in the UK, you are responsible for accounting for any UK VAT due on your supply. A company whose business establishment is in France contracts with a UK bank to supply French speaking staff for the bank’s international desk in London. (general builder). There is no general relief for the export of services as there is for good. However, if the goods are not eventually exported or you fail to obtain valid evidence of export you must account for VAT on the total value of the supply, including any deposit, progress or stage payments, on your next VAT Return. Rail contractors offer services for the movement of full loads in wagons, containers and swap bodies. However it will depend on the services that you are providing and discussed in more detail with your accountant. It does not extend to services which simply facilitate supplies. Examples of services excluded from this description are the supply of: This covers entering into agreements not to pursue or undertake any business activity and or refraining from exercising, or relinquishing, intellectual property rights. You should take care to read the relevant sections in full and remember that lists of examples are not exhaustive. Goods being exported outside the UK or EU must be fully and clearly described with the value shown on the export declaration. There are separate rules for B2B and B2C supplies. You must deliver the goods direct to the ship for loading on board, obtain a receipt for them on board and keep it to support your claim for zero rating. Information from the boarding cards or travel documents presented by entitled passengers should be kept by retailers as part of their export evidence. Services which, under the place of supply rules, are supplied in another country are outside the scope of UK VAT. If you supply services relating to land in an EU member state, you may be liable to register for VAT in that member state. Where the export is one of restricted goods you will need to get a licence in addition to the official and commercial transport documentary evidence: More advice on restricted goods may be obtained from the Export Control Joint Unit, the Animal & Plant Health Agency (APHA) and the Department for Digital, Culture, Media & Sport. (a) Zero rating the supply of goods made from ‘airside’ duty or tax-free shop. VAT is due at the appropriate UK rate. The following are not means of transport: There are different rules for the place of supply of services of hiring out means of transport depending on who receives the supply and whether the hire is short-term or long-term. A zero-rated VAT supply is one which is subject to VAT but where the VAT is at 0%. You’ll need to include the full title of this notice. The Channel Islands are part of the EC for customs purposes but outside the EC for VAT purposes. You must account for VAT accordingly if the supply would normally be standard-rated in the UK and you do not: You must amend your VAT records and account for VAT on the taxable proportion of the invoiced amount or consideration you have received. Most businesses that export goods use a transporter or customs agent. UK VAT law covered by this notice is contained in the VAT Act 1994, as amended, as follows: EU VAT law covering this notice is contained in Council Directive 2006/112/EC (Principal VAT Directive) and Council Implementing Regulation (EC) No 282/2011 as amended, which directly applies in the UK. It also applies to mobile floating structures such as drill ships, tankers, jack-up rigs, semi submersible rigs and Floating Production Storage and Offloading vessels which are often stationed at fixed locations. If you, as retailer, arrange for goods to be exported outside the UK or EU you may zero rate the supply provided all the conditions in paragraph 3.3 are met. See VAT Mini One Stop Shop: register and use the service for more details on scheme registration. Any agreement reached on acceptability of alternative evidence should be confirmed in writing. See paragraph 11.2 for details of procedures to follow in these circumstances. The United Kingdom (UK) and also the Isle of Man. Evidence must show the goods you supplied have left the UK or EU. For the purposes of this rule, goods are all forms of tangible moveable property. It’s the nature of the service that you should consider, rather than your professional qualification or status. To decide where a service is being used for private purposes, you should consider the nature of the services being provided. If the replacement goods are to be exported they may be zero-rated, subject to the normal export rules. An individual has only one usual place of residence at any point in time. If you have lost or mislaid the official or commercial evidence of export supplied by the ship owner or carrier, duplicate evidence of export may be obtained. List separately any freight or export insurance you included in the price. The client is based in Jersey, selling products and services to Jersey people. This is where essential day-to-day decisions concerning the general management of the business are taken. We issued an invoice addressed to UK central finance office for the labour and equipment without any VAT based on place of supply rule outside of scope of EU and UK VAT. This includes both finished commodities and raw materials but not immoveable property such as land or permanently installed goods as described in section 7. Most of what I have read says that as we are making the supply (the survey as I read it) in the UK then I should charge UK VAT. This, together with the supporting supplementary evidence will be accepted as evidence for zero rating. There are many place of supply rules for working out where services of different kinds are supplied, for example where the place of supply of services is: If you belong in the UK and the place of supply of your services is the UK, you must charge any UK VAT due and account for it to HMRC regardless of where your customer belongs. See Claim back VAT paid in the EU if you’re established elsewhere (Notice 723A). You must export the goods from the UK or EU and get valid evidence of export within the time limits shown in the table. For VAT purposes any goods supplied to the Channel Islands are regarded as exports and may be zero-rated, T0 by default, subject to the normal HM Revenue & Customs (HMRC) conditions. To help us improve GOV.UK, we’d like to know more about your visit today. This does not cover supplies of the letting on hire or leasing of goods where the services of an operator or technician are included. Before zero rating the supply and releasing the goods to your customer, you must confirm what evidence of export is to be provided. This is the place where the customer takes actual physical control of the means of transport (for example, where the vehicle is located when the keys are handed over). The UK consists of Great Britain, Northern Ireland and the waters within 12 nautical miles of their coastlines. I, ………………………………………………………………………………………..(full name of signatory) certify that the article(s) detailed below and sold as Lot No(s)…………………………………………….at auction by me on …………………………………………………………………..(date of sale) has/have* been exported from the UK or EU by post/courier service*: Method of posting (parcel/letter and so on)……………………………….. If you or your agent make your electronic export declarations via CHIEF or the WEB declaration option, an alternative to the GDM can be obtained by printing a copy of the screen ‘DEVD option 2’ in CHIEF. If you can attribute the input tax due under the reverse charge to your taxable supplies (and so can reclaim it in full) then the reverse charge has no net cost to you. B2B supplies means supplies made to businesses. A supply of staff is the placing of personnel under the general control and guidance of another party as if they become employees of that other party. If you make an export you can zero rate the supply in your records when the goods are supplied to your customer. Such goods will normally be treated as supplied where they are installed. An event is characterised by a gathering of people to watch or take part in an activity for a short or limited time rather than an ongoing basis. Currently MIB is outside the scope of the NES and you will need to complete a non-electronic paper Single Administrative Document (SAD) form C88 and follow the procedures below. Whilst both are taxable in the country where the installation takes place there are differences in accounting treatment. If you need general help with this notice or have another VAT question you should phone our VAT helpline or make a VAT enquiry online. As businesses based in the Channel Islands have become more sophisticated, however, goods are now imported from the Far East, including electronics and accessories. You can get further guidance about the commercial aspects of specific exports from freight forwarders, shipping companies or airlines at the appropriate ports or airports. In certain circumstances, specific services may be subject to the zero rate of VAT when supplied in the UK. You can hire someone to deal with customs and transport the goods for you, or you can do it yourself. The retail export scheme allows participating retailers to refund VAT on goods purchased by entitled customers. The place of supply of your intermediary services is where the underlying arranged supply is made. You can change your cookie settings at any time. We’ll send you a link to a feedback form. When you amend your VAT records, you must make an entry equal to the tax on the supplies concerned on the ‘VAT payable’ side of your VAT account. This is because the services are not for the needs of a specific branch. Advertising or promotional messages may be disseminated in numerous ways. If you are still unhappy, find out how to complain to HMRC. If they did this, they would be unable to provide you with an original officially certified copy 3 for your records). ... Exports to the Channel Islands. Similarly, where a supply would be outside of the scope of EU VAT but is partially used and enjoyed within the UK, UK VAT will be due on that portion of the service that’s consumed here. But, it is always necessary to consider all the facts. This must include a declaration that the goods are solely for use as stores on a named ship or aircraft that is entitled to receive duty-free stores for the voyage in question, which is to an eventual destination outside the UK. The supply position is the same as at (b). The establishment most closely connected to the supply will be the business establishment in the UK. See also paragraph 5.14 for a possible interaction with VAT grouping and other member states. If your client actually uses your services to make supplies in the UK (or other EC countries) then you may be required to account for UK (or other EC VAT) under the "use and enjoyment" provisions. Hello, you do not need to charge VAT on invoices to the channel islands, only the amount for the service/product. A UK client has been offered locum work through their VAT registered PSC at a Channel Island hospital. Any hire beyond this period is a long-term hire. For further information about this, please refer to the HMRC website. If your customer is unable to provide a VAT number you can accept alternative evidence. You can change your cookie settings at any time. Examples of services that are land related include: Examples of services that are not directly land related include: If you belong in the UK and are a UK VAT-registered recipient of a service directly related to land (see paragraph 7.3 and paragraph 7.4) you are required to account for the reverse charge if your supplier belongs outside the UK (see section 5), even if they have a UK VAT registration. HMRC state that products shipped to the Channel Islands are not charged VAT. See paragraph 7.10 for evidence of export from the UK or EU. The VAT territory of the EU is important in establishing where particular types of service are supplied. If you are using commercial transport documents as proof of export for goods exported outside the UK or EU by: The International Consignment Note (CMR) provides evidence of the identity of the contracting parties when goods are transferred by road. If you’re a UK supplier providing services in an EU member state you should check with your customer and that member state how their rules work. Amongst other things it states that EU member states shall lay down conditions ‘for the purpose of making sure the correct and straightforward application of such exemptions and preventing any evasion, avoidance or abuse’. Sadly services supplied from the UK are subject to VAT so even with a valid JE or GY postcode in the Channel Islands we have to charge you the VAT. Don’t include personal or financial information like your National Insurance number or credit card details. Information on customs procedures is contained in Notice 275: customs export procedures. Acceptable evidence showing that the sale is to an entitled passenger is obtained from the airline boarding card or travel document. Article 146 of the EU Directive 2006/112 provides the legal basis for exempting goods dispatched or transported out of the UK or EU. A person is not resident in a country where they’re only visiting as a tourist. In this circumstance the non-UK supplier must register and account for VAT in the UK. This will usually be the head office, headquarters or ‘seat’ from which the business is run. B2C supplies of valuation of, or work on, goods are supplied where those services are physically performed. The goods may be exported by any of the following means: An indirect export occurs when your overseas customer (as defined in paragraph 2.4) or their agent collects or arranges for the collection of the goods from you the supplier within the UK and then takes them outside the of the UK or EU. 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