You may need other documentation to get your goods into the destination country. If you operate a duty or tax-free shop at an airport, you can zero rate the supply of goods for immediate export by travellers departing on flights to destinations outside the UK and EU. Details of any changes to the previous version can be found in paragraph 1.2 of this notice.Parts of this notice have the force of law under section 30(6) of the VAT Act 1994 and regulation 129 of the VAT Regulations 1995. Where goods have been entered to NCTS, official evidence of export will be confirmation that the CT procedure has been discharged. Such evidence should be kept as part of your records. If you’re in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules. In this case, the place of supply is that place. I believe that you will just put the figure into the 'Total Goods TO Other EU Countries' box on the VAT return If you export to non-UK and non-EU countries via EU member states, you will require either official proof of export for VAT purposes (see paragraph 6.2) or commercial transport evidence (see paragraph 6.3) that the goods have left the EU to substantiate the zero rating of the supplies. You as the UK supplier may not be certain as to which courier or fast parcel company has made the export declaration to customs. You should take care to read the relevant sections in full and remember that lists of examples are not exhaustive. If this is the case then there are additional rules. (Signature of auctioneer). If a land related service is provided alongside other services that do not relate to land you will need to consider whether there are separate supplies or a single supply to which other services are ancillary. When filling in the value of your goods on the invoice, use the price you’re selling them for. VAT is due at the appropriate UK rate. 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. There is no VAT in the Channel Islands or Gibraltar, which are outside the UK and EU for VAT purposes. If the supplier belongs outside of the UK and you, the business customer, belong in the UK (and are VAT registered in the case of hire of means of transport), it’s you, the customer that accounts for the VAT using the reverse charge procedure (see section 3). From 1 December 2012 if you are not established in the UK, there is no registration threshold for taxable supplies of services. You can find out more about removals in The single market (VAT Notice 725). The hard drives for the hosting are physically in USA. Most businesses that export goods use a transporter or customs agent. Conditions for zero rating in specific circumstances, 5. We use this information to make the website work as well as possible and improve government services. You must also get evidence of delivery to the FCDO or FCDOS office in the UK within 3 months of the time of the supply of goods. (b)The effect zero rating has when customer returns goods as defective and a replacement is provided. There are different rules depending on whether you’re supplying services to consumers B2C or business B2B. Services which, under the place of supply rules, are supplied in another country are outside the scope of UK VAT. The GDM is official evidence of export only when goods leave the EU via the UK. This is because the Channel Islands aren't part of the European Union with respect to VAT. The reverse charge is not a complicated accounting procedure. As the Islands do not have their own VAT, a UK business should not be charged Channel Islands VAT on any goods, but may be charged the standard rate of UK VAT on importing goods into the UK. This section explains the evidence that is required for a supply of goods exported outside the UK or EU to be zero-rated for VAT. (a) Evidence of posting for letter post or airmail (packages up to 2kg). This might happen where more than 2 businesses are involved. See paragraph 7.3 for goods that your customer intends to export in his baggage or his private motor vehicle. Your supplier is liable to account for any UK VAT due. Please note that you need to ensure that the country selected is Guernsey, Jersey, Alderney, Herm or Sark (the Channel Islands) and NOT United Kingdom. The place of supply rules contain default or ‘general’ rules, one for supplies to business customers B2B and one for supplies to consumers B2C. For more information on VAT groups refer to Group and divisional registration (VAT Notice 700/2). To evidence that the supply was made to an overseas person, you must be able to identify the destination of the goods. It applies if your supplier belongs outside the UK even if they have a UK VAT registration number. If you, as a retailer, are unsure about the acceptability of the evidence you propose to use you should contact VAT: general enquiries. For a VAT rate of 20% the VAT element would be calculated at 1/6th. Where certificates or instruments are sold with goods or services they’ll usually be viewed as incidental or ancillary to the main supply. If you use any of these services for a non-UK or non-EU destination, you will use a bar-coded service label and customs declaration. More details about NCTS and CT requirements can be found in Notice 275: customs export procedures. If you are not already registered in the UK, you’ll be liable to register and account for any VAT due. Once you have determined which rule applies you should refer to section 16 to determine whether your supply is subject to the zero rate. If the extension means that it exceeds the 30 or 90 day period, the place of supply is determined by the long-term hire rule, unless it can be satisfactorily demonstrated that the circumstances leading to the events were outside the control of the parties involved. You can zero rate such supplies as ships’ stores providing all the following applies: The concession described extends only to those supplies of fuel, which were zero-rated prior to 1 July 1990. They’re standard, but EU countries can apply them differently. In most cases the time of supply will be the earlier of either the date you: For the treatment of deposits and progress payments see paragraph 11.5. A zero-rated VAT supply is one which is subject to VAT but where the VAT is at 0%. See section 5 . Short-term hire means a continuous period not exceeding 90 days if the means of transport is a vessel and not exceeding 30 days for any other means of transport. Details of the EU VAT territory are available at VAT: EU country codes, VAT numbers and VAT in other languages. How and when you can apply zero-rated VAT to goods exported outside the UK or EU. See Claim back VAT paid in the EU if you’re established elsewhere (Notice 723A). Services supplied in the UK may be exempt, zero-rated, standard-rated or liable to VAT at a reduced rate. For single consignments you must obtain commercial evidence of shipment by road, rail, sea or air and a certificate of posting or equivalent evidence of export when exported by other means. Proof of export for zero rating in specific circumstances, 10. It only applies to taxable supplies, either at the standard, reduced, or zero rate see section 29 of VAT guide (Notice 700). The Channel Islands are part of the customs territory of the UK and EU, but are outside the UK and EU, for fiscal (VAT) purposes. Acceptable evidence showing that the sale is to an entitled passenger is obtained from the airline boarding card or travel document. If the first contract is genuinely of a short-term hire it will remain so. These services are: You can zero rate the supply of the making of arrangements for: Zero rating under these provisions only applies to the actual making of arrangements for eligible supplies. However it will depend on the services that you are providing and discussed in more detail with your accountant. Thanks a lot. All content is available under the Open Government Licence v3.0, except where otherwise stated, 2. It is in 3 parts and is completed and signed by the sender of the goods, the carrier and the person receiving the goods. A UK supplier contracts to supply advertising services. Any vessel on which VAT had been paid before it was brought to the Channel Islands may lose that VAT-paid status, depending on where it … You are responsible for making sure that the messes inform you promptly of when the adoption of the goods took place. If you intend to make such a supply and are unsure as to whether it may be zero-rated, you should contact our VAT: general enquiries. This is because in these circumstances the GDM only confirms that the goods have left the UK, not that the goods have also left the EU.). See paragraph 7.12 for information about evidence of export of goods to the Channel Islands. Consequently it may be difficult to get official proof of export, leaving you to rely on the commercial evidence of export as described above. 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. If you exported controlled goods, for example firearms, keep the paperwork that shows who owns the goods. Where export goods damaged after shipment are relanded in the UK they must be declared to HMRC. In such cases the place of supply of such services depends on the nature of the services provided. Click Settings then click Company Preferences and click the VAT tab and ensure that the VAT Scheme selected is Standard VAT. The following table has the force of law. A supply of goods sent to a destination outside the UK or EU is liable to the zero rate as a direct export where you: You must not zero rate an indirect export where the goods are either: If your export transactions do not fit specifically into any of these categories or those listed in sections 3 and 4 contact VAT: general enquiries for advice prior to export, obtaining a written decision, if necessary. It does not apply if a supply of services has only an indirect connection with land, or if the land related service is only an incidental component of a more comprehensive supply of services. This notice deals only with the place of supply of land related services. This happens when a departure message is input to CHIEF by either the port inventory system, a nominated loader, or, in some cases, by customs. When determining whether a service is one of admission to an event it’s important to consider firstly whether an event is taking place and secondly whether the payment made relates to admission. Even if you make no taxable supplies yourself you may still be required to register if the value of general rule services received from overseas suppliers exceeds the registration thresholds. This sub-paragraph applies to everything provided as part of an advertising campaign, even if elements of the campaign would have fallen under other place of supply rules or been treated as a supply of goods had they been supplied in isolation. There are separate rules for B2B and B2C supplies. You then include in the relevant boxes of your VAT Return the: The reverse charge does not apply to supplies of services where both the supplier and the customer belong in the UK. Read VAT Mini One Stop Shop: register and use the service for more details on scheme registration. There is no general relief for the export of services as there is for goods. Suppliers who belong outside the UK and whose customers account for UK VAT by means of the reverse charge or through MOSS, may be able to reclaim VAT incurred on UK costs. It does not include charges by agents for arranging the supply of admission. Rail contractors offer services for the movement of full loads in wagons, containers and swap bodies. If you, as an exporter or supplier, do not input export declarations yourself, you will not receive the appropriate messages to confirm the goods have been exported from the UK or EU. The VAT territory of the EU is important in … The most common forms of event are sports matches, theatrical or musical performances, conferences, exhibitions, seminars and trade shows. Where the place of supply of your services is outside the UK, you should make sure that your records contain enough evidence that this is the case. the Canary Islands (Spain), Gibraltar and the Channel Islands (UK). 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. 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. The following are examples of services taxed where they’re performed when supplied B2C: The place of supply of restaurant and catering services is where the services are physically carried out. In this section, your customer is the person to whom you supply your intermediary services. In some circumstances you may be required to enter the goods to the CT procedure if the goods you export transit the UK or one or more EU member states before leaving the UK or EU. If there is any doubt in your mind you should confirm the position with your supplier. You should ask your agent or the person who declares the goods on your behalf to supply you with a copy of the final GDM appropriate for your exports. This information can be printed and can also be used to confirm that the goods have left the UK or EU. ... Exports to the Channel Islands. If you sell goods through an auctioneer who is acting in their own name, the goods are treated as being supplied to the auctioneer and must not be zero-rated by you as an export. You can find more information on the Parcelforce Worldwide International Services website. Extra Statutory Concession (ESC) 9.2 allows vessels engaged on commercial voyages within UK territorial waters (or within the limits of a port) to receive certain types of marine fuel VAT free. There is no general relief for the export of services as there is for good. Products shipped to the Bailiwick of Guernsey and States of Jersey are not charged VAT. The place where a supplier or customer belongs will determine where the service is supplied and who accounts for any VAT due in the following cases: You belong in the UK for the purposes of either making or receiving a supply of services when you have any of the following: The references to a ‘business establishment’ or a ‘fixed establishment’ should also be read as including a legal person with no business activities for deciding where such a customer belongs. The end of the transition period will spell implications for the ‘VAT-paid' status for any vessel located in the Channel Islands. Where the overseas customer arranges for the goods to be collected ex-works the CMR alone is not conclusive evidence that the goods in question have left the UK or EU but, where the CMR is used as part of the evidence, it is important that the information is complete and all the details legible. Equal weight is put on official and commercial transport evidence but both must be supported by supplementary evidence to show that a transaction has taken place, and that the transaction relates to the goods physically exported. You can find out about the liability by referring to VAT Notice 708: buildings and construction and VAT Notice 742: land and property. All other B2B services are determined under the general B2B rule. If a service is provided to multiple specific sites in different countries it may still be directly related to land. If you receive a supply to which the reverse charge applies and yet your non-UK supplier issues a VAT invoice on a UK VAT registration, you must still apply the reverse charge as it is not an optional adjustment. This notice explains the conditions for zero rating VAT on an export of goods, that is, when the goods leave the UK or EU. This section covers the specific evidence of export that you must obtain according to the method of export used. Effective use and enjoyment takes place where a recipient actually consumes services irrespective of the contractual arrangements, payment or beneficial interest. The certificate of shipment is an important document, which should be sent to you as soon as the goods have been exported from the UK or EU. When this is known, you must decide whether the service is being actually used, enjoyed and consumed in that location. Firstly, it was specifically concerning the Channel Islands, and secondly it was for a sale from the UK via Amazon, who charge VAT on all their orders to Channel Island addresses. To decide where a service is being used for private purposes, you should consider the nature of the services being provided. Where this applies, your services are supplied where your customer belongs and so are outside the scope of VAT. Where the 2 contracts together exceed 30 days (or 90 days for vessels) then the second and subsequent consecutive contracts are treated as long-term hires. The next 4 sentences have the force of law. The driver collecting the parcels will endorse the receipt copy and return it to the consignor. But, elements of telecommunications services used in the UK were ignored if they were: The exception to this rule was that if a UK resident used telecommunications services outside the EU under such an account with a UK provider, those services were outside the scope of UK VAT, provided that evidence was retained to substantiate the element of use and enjoyment that occured outside the EU. For example, the services of an interior designer contracted to redesign the decor of a particular hotel would be land related. It will take only 2 minutes to fill in. If you are not UK VAT registered and receive the services in paragraph 5.9 supplied in the UK the reverse charge does not apply. (d) Overseas customer arranging the export by courier. 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. But, if the payment gives the right to attend an event it’ll be regarded as a charge for admission. The relief does not apply if services are received for business purposes. It does not extend to services which simply facilitate supplies. If you supply services relating to land in an EU member state, you may be liable to register for VAT in that member state. to the Channel Islands) are exempt from VAT, not zero rated. To help us improve GOV.UK, we’d like to know more about your visit today. You can zero rate the supply as a direct export provided that the goods are exported and you obtain valid proof of export within 3 months of the time of supply. If your customer is unable to provide a VAT number you can accept alternative evidence. It includes vehicles designed to be pulled, drawn or pushed by other vehicles. You must not zero rate goods for export delivered to government departments in the UK even if the goods are ordered for, or by, overseas establishments. Whilst both are taxable in the country where the installation takes place there are differences in accounting treatment. Don’t worry we won’t send you spam or share your email address with anyone. An intermediary arranges supplies between 2 other parties - a supplier and that supplier’s customer. For the purposes of this rule, goods are all forms of tangible moveable property. Supplies of new or second-hand freight containers for export are treated as supplies of goods and can be zero-rated provided that the conditions for export are met. Additional rules apply to B2C letting on hire of goods and radio and television broadcasting services (see section 13). See VAT Notice 700/2: group and divisional registration. UK VAT grouping on its own does not cause this to happen. A VAT group is treated in the same way as a single company registered for VAT on its own. If the evidence of export provided is found to be unsatisfactory, VAT zero rating will not be allowed and the supplier of the goods will be liable to account for the VAT due (see paragraph 11.2). It must include the following information: You can zero rate the supply of goods ordered by British Embassies, British High Commissions and British diplomats abroad that are delivered to the FCDO or FCDOS (formerly the FCO, FCOS and Department for International Development) for export through diplomatic channels within 3 months of the time of supply. A Despatch Pack must be completed for each overseas address and consignee. An ‘overseas person’ is a person or company who is not resident in the UK or has no business establishment in the UK from which taxable supplies are made, or is an overseas authority. If you supply B2C services of arranging a supply which is supplied in an EU member state and your customer is not EU VAT registered or otherwise in business, you may be liable to register for VAT in that member state. If for any reason the goods are not exported and an export declaration has been made, the customs officer at the declared port of export must be formally advised and the export declaration cancelled. The business establishment is the place where you have established your business and the main functions of the business’ central administration are carried out. For the purpose of determining the place of supply, land means any: This rule applies only to services which relate directly to a specific site of land or buildings, that is those services derived from land and where the land is a central and essential part of the service or where the service is intended to legally or physically alter a property. 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 the evidence is found to be unsatisfactory you as the supplier will become liable for the VAT due. VAT guide (VAT Notice 700) contains details of the records and accounts you should keep. 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 on the undermentioned vessel/aircraft*: Name of export vessel, or aircraft flight prefix and number, Port or airport of loading………………………………………, Date of sailing ordeparture……………………………………. In other circumstances the supplier is required to register and account for VAT on the supply. 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