Virtual Exporting

[StevieBee]

Right then:

We're in the design game (amoung other things!) We've designed a major brochure for UK client for their US operation. We have set up a deal with an American design company who are going to "Americanise" it (i.e: spell it all wrong!! ) and arrange the printing of it locally.

We'll be sending the files via isdn to the American design company.

The client would prefer us to invoice their US office direct in one hit so the US agency over there would have to invoice us for their work on the job.

So, how do we stand on export/import?

Technically, we are exporting goods to the value of about £10k but in reality, we are sending nothing but 0s and 1s!

I've started trawling through some of the governemnt sites which seem to tell you everything and nothing!

Any tales of experience would be gratefully recieved.

[jvaughan]

StevieBee said:

Right then: We're in the design game (amoung other things!) We've designed a major brochure for UK client for their US operation. We have set up a deal with an American design company who are going to "Americanise" it (i.e: spell it all wrong!! ) and arrange the printing of it locally. We'll be sending the files via isdn to the American design company. The client would prefer us to invoice their US office direct in one hit so the US agency over there would have to invoice us for their work on the job. So, how do we stand on export/import? Technically, we are exporting goods to the value of about £10k but in reality, we are sending nothing but 0s and 1s! I've started trawling through some of the governemnt sites which seem to tell you everything and nothing! Any tales of experience would be gratefully recieved.

as far as I understand import / export does not cover electronic transferes. Only physical goods that "Physically" pass across boarders.

I work for a large Gobal Company. If I write a document for a company overseas, and send it to that company via one of our pre-sales people located in that company we simply just do it(and have been for the last 10 years plus).

[eric mc]

It looks like you are "exporting" a service rather than "goods". I would strongly advise that you look up the rather complicated VAT regulations on provision of services to overseas customers.

[Davel]

If at all in doubt and you can't be arsed to read through all the legislation then ring up the VAT free helpline for advise!

Good luck

[eric mc]

Legal point - the VAT authorities WILL NOT stand by ANY advice they give over the telephone. The ONLY advice they will stand by is when they clarify a point to you IN WRITING (called a VAT ruling). Otherwise, you MUST rely on the information given in the relevant VAT 700 leaflet.

If you do get telephone advice - at least ask the person you are talking to for their FULL name and what VAT leaflet (or section of the VAT Act) they are quoting from.