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Posted Tue, 22 Oct 2024 16:53:46 GMT by Cattay
We are a UK VAT registered company and we will be selling some of our goods ex works to a French VAT registered company but the goods are being collected from our stores in the UK by a Canadian customer of the French company and being shipped back to Canada by their customer.
The French company is selling the goods to their Canadian customer ex works from our store.
Are we correct in thinking that as long as all the conditions in VAT notice 703 section 3.4 are met, that we can invoice our French customer with zero rated VAT as an indirect export and that the French company can also invoice their customer without VAT as it is both an indirect export and the goods do not enter France ?
As the goods are being collected from our store we know that they are being exported within the specified time limits , and we have asked that shipping documents are provided to us as export evidence.
The guidance states that "an indirect export occurs when your overseas customer or their agent collects or arranges for the collection of commercial goods from you the supplier within the UK and then takes them outside of the UK".
Does the fact that our French customer has arranged for their customer to collect the goods from us in the UK and take them overseas therefore qualify (assuming all the specified conditions are met as per Notice 703) ?
Posted Wed, 23 Oct 2024 14:55:18 GMT by HMRC Admin 13 Response

Hi

As you have stated the guidance advises:
 "An indirect export occurs when your overseas customer or their agent collects or arranges for the collection of commercial goods from you the supplier within the UK and then takes them outside of the UK".
For the supply to be treated as an indirect export you need to establish who your customer is.

From the details, supplied in your question, your customer is the French company and the French company or their agent are collecting or arranging for the collection from your premises.
You have stated that the French company are selling the goods to the Canadian company from your store.

This implies that the French company is making a supply of goods in the UK for export.
This also then implies that you are making a UK supply to the French company in the UK.
If we follow the Place of Supply of the goods then you will be making a taxable supply of goods in the UK and the French company will be making a zero rated export of goods to Canada

Thank you
Posted Wed, 23 Oct 2024 17:49:34 GMT by Cattay
Thank you

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