Zero VAT for Export to Dubai from UK

We are a company based in Dubai and looking at working with a UK based company to supply us Hotel Supplies. We want to know if we are entitled to reclaim or (better still) not pay VAT charges as ALL ordered items would be for shipping to UAE. We can provide all official Shipping documentation and audit trial of paperwork in regards to order, invoice, payment .... What we want to know is it possible for the UK based company to NOT raise an invoice to us inclusive of VAT - since all items are for Export. The UK based company does not have an Export License, but can have items delivered directly to Freight Forwarders for Export to us. I've read some of the online literature and it appears to be some guidelines and I was hoping someone could help clear my path on this! Thanks

It is possible for a UK business seller to charge VAT at zero rate if the goods are being exported from the UK. To do this it is the responsibility of the seller to hold the evidence of export from the UK . If the seller has any doubt they will not get this evidence then they may charge the standard 20% VAT. It is therefore normal for the seller to also be the exporter of the goods . In this way they are certain the goods are exported. There is not a general requirement to hold an export license for most goods in the UK. It is however a requirement that the exporter of the goods is established in the UK.

Hi Subodh,

Please see the guidelines below for UK suppliers being able to Zero rate supplies of goods to overseas companies:

VAT on goods exported from the UK (VAT Notice 703) 3. Conditions and time limits for zero rating

Thank you.