Export Zero Rated VAT

I’m currently working for a US company that is buying goods from a UK supplier, but shipping the goods directly to the US company’s customer in Malaysia. I know that ordinarily the goods would be zero rated if shipped outside the UK, but where technically would the sale from the UK company to the US company be and would the UK company be required to charge VAT to the US co? The US Co has no UK base. The goods are being shipped from the UK to Malaysia. Does the US company have any reporting VAT liability?

Hi,

If the UK company are using their details, EORI etc, for the export of goods then they are not supplying the US company with these goods in the UK. The sale should be at the zero rate of VAT as long as the criteria are met below:

Conditions and time limits for zero rating

There will of course be a sale between the UK company and the US company but it does not sound like this is taking place in the UK and so the sale is either taking place in transit after exiting the UK or in Malaysia.

Thank you.