VAT on export to Guernsey?
Discussion
It was always my understanding that we can zero rate a sale to Guernsey if we keep evidence of the export? As we get a receipt from Royal Mail this would class as proof? This page suggest we are under no obligation to zero rate though!
https://www.gov.gg/article/120182/Claiming-back-VA...
Obviously for us it makes no difference, VAT isn't ours. For the customer it makes a difference! They have happily paid the VAT and not even asked for it back, I was planning on refunding it as in my eyes they are entitled to it? I was going to refund the VAT, zero rate the invoice with a not saying "No VAT-Export to Guernsey"
TIA
https://www.gov.gg/article/120182/Claiming-back-VA...
Obviously for us it makes no difference, VAT isn't ours. For the customer it makes a difference! They have happily paid the VAT and not even asked for it back, I was planning on refunding it as in my eyes they are entitled to it? I was going to refund the VAT, zero rate the invoice with a not saying "No VAT-Export to Guernsey"
TIA
MechMovement said:
Guernsey is VAT exempt so yes you are correct.
We export quite a bit to Guernsey, do keep proof.
"Exempt" in VAT language is very specific. Sales to a customer in a non EU country are not "VAT Exempt". They are "Zero Rated" for VAT purposes. There is a significant difference between something being "VAT Exempt" and being "Zero Rated for VAT".We export quite a bit to Guernsey, do keep proof.
Per HMRC website -
VAT on exports to non-EU countries
VAT is a tax on goods used in the EU, so if goods are exported outside the EU, VAT isn’t charged. You can zero-rate the sale, provided you get and keep evidence of the export, and comply with all other laws. You must also make sure the goods are exported, and you must get the evidence, within three months from the time of sale.
6.3 Commercial transport evidence
This describes the physical movement of the goods, for example:
Authenticated sea-waybills
Authenticated air-waybills
PIM/PIEX International consignment notes
Master air-waybills or bills of lading
Certificates of shipment containing the full details of the consignment and how it left the EC, or
International Consignment Note/Lettre de Voiture International (CMR) fully completed by the consignor, the haulier and the receiving consignee, or Freight Transport Association (FTA) own account transport documents fully completed and signed by the receiving customer
Further details on the purpose of these documents can be found in Notice 275 Customs: export procedures.
Photocopy certificates of shipment are not normally acceptable as evidence of export, nor are photocopy bills of lading, sea-waybills or air-waybills (unless authenticated by the shipping or air line).
6.4 What supplementary evidence is available
You are likely to hold, within your accounting system some or all of the following:
customer’s order
sales contract
inter-company correspondence
copy of export sales invoice
advice note
consignment note
packing list
insurance and freight charges documentation
evidence of payment, and/or
evidence of the receipt of the goods abroad
You must hold sufficient evidence to prove that a transaction has taken place, though it will probably not be necessary for you to hold all of the items listed.
This describes the physical movement of the goods, for example:
Authenticated sea-waybills
Authenticated air-waybills
PIM/PIEX International consignment notes
Master air-waybills or bills of lading
Certificates of shipment containing the full details of the consignment and how it left the EC, or
International Consignment Note/Lettre de Voiture International (CMR) fully completed by the consignor, the haulier and the receiving consignee, or Freight Transport Association (FTA) own account transport documents fully completed and signed by the receiving customer
Further details on the purpose of these documents can be found in Notice 275 Customs: export procedures.
Photocopy certificates of shipment are not normally acceptable as evidence of export, nor are photocopy bills of lading, sea-waybills or air-waybills (unless authenticated by the shipping or air line).
6.4 What supplementary evidence is available
You are likely to hold, within your accounting system some or all of the following:
customer’s order
sales contract
inter-company correspondence
copy of export sales invoice
advice note
consignment note
packing list
insurance and freight charges documentation
evidence of payment, and/or
evidence of the receipt of the goods abroad
You must hold sufficient evidence to prove that a transaction has taken place, though it will probably not be necessary for you to hold all of the items listed.
Dave_ST220 said:
It was always my understanding that we can zero rate a sale to Guernsey if we keep evidence of the export? As we get a receipt from Royal Mail this would class as proof? This page suggest we are under no obligation to zero rate though!
https://www.gov.gg/article/120182/Claiming-back-VA...
, I was planning on refunding it as in my eyes they are entitled to it? I was going to refund the VAT, zero rate the invoice with a not saying "No VAT-Export to Guernsey"
TIA
Correct, no vat on exports to Guernsey. Bigger companies, John Lewis, Amazon etc set it up automatically from the post code but your system probably hasn't been set up so select zero rate tax on your invoicing programme.https://www.gov.gg/article/120182/Claiming-back-VA...
, I was planning on refunding it as in my eyes they are entitled to it? I was going to refund the VAT, zero rate the invoice with a not saying "No VAT-Export to Guernsey"
TIA
If you post something then you should keep proof of postage.
Hope it becomes a regular market for you.
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