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Posted Fri, 15 Nov 2024 16:52:08 GMT by Hamza
Hello, I am a UK based customer and want to buy a machine that will be directly exported by the vendor themselves without me consuming or taking delivery of the machine here in the UK. The vendor says that VAT will be refunded back to me directly once they receive the export documents from the logistics company. On VAT notice 703 section 4.1 I read that the supply from the vendor to myself is in the UK so it is subject to VAT. Which means in order to claim the VAT back due to the export, I must register for VAT and claim the VAT as an input tax on a return. Please can someone clarify if section 4.1 on VAT notice 703 is applicable to my scenario? As both options ultimately lead to the same result in me being refunded the VAT, however one being a bit more long winded than the other. Thank you.
Posted Mon, 18 Nov 2024 11:55:52 GMT by HMRC Admin 21 Response
Hi,
If you are selling goods to an overseas customer and the UK supplier is sending the goods themselves without you taking physical possession of the goods here then then are 2 transactions taking place.
The first transaction will involve a UK taxable supply from the supplier to you and then an export by you to your customer.
Section 4 of Notice 703 would then apply and you would need to become VAT registered in order to reclaim the UK VAT charged to you.
Thank you.
Posted Mon, 18 Nov 2024 13:31:52 GMT by Hamza
Hi, thank you very much for getting back to me. The goods are intended for resale, but not at the first instance where for example I will be invoicing a customer overseas who will take delivery of the goods. Rather, placing the goods through a relevant overseas marketplace at a later date for sale. As I think section 4.1 on VAT notice 703 mentions an overseas buyer places an order with me directly, however this is not the case. So was just wondering would section 4.1 still apply if I wanted to sell the goods overseas but have not got an overseas customer yet, but the machine is still being exported directly from the supplier nonetheless?
Posted Mon, 18 Nov 2024 20:05:15 GMT by Calcvat
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