VAT & Sale of Goods in USA

Business registered in the UK & VAT registered using FRS scheme. They sell the goods in the USA, which are shipped from the supplier/manufacturer in China directly to Amazon warehouse in the USA. The goods at no point enter the UK. These are then sold in the USA by Amazon with state taxes being paid at point of sale. Will these be sales Zero Rated or Outside the Scope of UK VAT. Also can you clarify if HMRC expects Outside the Scope of UK VAT transactions to be reported on the VAT boxes 6/7? Thank you.

Hi,

.If the goods do not enter the UK, then the supply will be outside the scope of UK VAT and these will not form part of your flat rate turnover. You can see guidance here:

Determining your flat rate turnover

Thank you.

Thank you for the response. Based on the provided guidance, it appears that if goods enter the UK and are subsequently exported for sale in another country, they must be accounted for in the Flat Rate Turnover and have VAT paid on them. Can you kindly verify if this interpretation is accurate?

Hi. This is correct as you will be making a zero rated export and this will form part of your Flat Rate turnover . Thank you .

 

In your response you did not answer the question 'Also can you clarify if HMRC expects Outside the Scope of UK VAT transactions to be reported on the VAT boxes 6/7?' What is the answer to this query.

Hi. If the supplies are Outside The Scope of VAT then these would need to still be reported on your VAT return in box 6 . Thank you .