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Posted Wed, 27 Sep 2023 16:11:09 GMT by Martinr6899
We have a client who is based in Italy and am sending them an order but we have been asked by the freight agent handling the shipment that we need to pay VAT on the value of the goods. The client in Italy has Italian VAT number but they do not have a EORI number. Is this correct for us to pay the VAT and should we be charging VAT to the client in Italy ?
Posted Tue, 03 Oct 2023 14:23:30 GMT by Jason Croke
Depends on the Incoterm and what was agreed when organising the shipping. If you shipped DDP (Delivered Duty Paid), then regardless of the customers VAT status, you are liable for any import duty and VAT (which you can't get back). If you shipped DAP (Delivered at Place) then your are liable for getting the goods to the customer, but the customer is liable for paying any import VAT/duty. If you don't tell the freight agent, they usually default to DDP, because they have a relationship with you/the sender and it's easier for them to recharge you any foreign costs incurred. Whereas if you ship DAP, it means the freight agent has to invoice the customer and there is a risk they will not get paid, or else the freight agent has to withhold delivery until the customer pays, either scenario is a hassle for the freight agent.
Posted Tue, 03 Oct 2023 23:12:33 GMT by sunil makim
Ideally you get paid proforma by your Italian customer for all costs using Incoterm DAP. Customs. Costs to take. Into consideration are Export declaration ams Transit Declaration which together are from £ 75 usually depending on value of goods. In Italy an import declaration will be applicable to the Buyer , and they will be charged import tax , for which they. Can claim back any Italian import VAT paid 
Posted Wed, 04 Oct 2023 13:04:48 GMT by Customs oldtimer
You wouldn’t charge UK Vat as the sale is an export . Nor can you charge Italian VAT as you are not registered for VAT there. When selling overseas you should be clear with both your customer and courier who is paying for what so there are no surprise fees. So you could make sure your price is inclusive of all taxes and charges.
Posted Thu, 05 Oct 2023 14:18:26 GMT by HMRC Admin 25
Hi Martinr6899,
If goods are exported to Italy then the supply should be zero rated as long as the conditions are met below:
Conditions and time limits for zero rating
The import VAT in Italy would normally be paid by the importer of the goods in to Italy.
However, if you are the importer of record for the goods in to Italy then it would be your responsibility to account for the VAT in Italy and also the VAT on the sale of the goods in Italy to your customer.
Thank you. 

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