exported services/goods

My company has a contract agreement with an overseas customer, the contract includes providing services and goods, some of these will be provided to us from a UK supplier and we will redirect/export to our overseas customer. As a UK based company we are obligated to pay VAT (%20) to the UK supplier for the goods and services they are providing to us and are related to our overseas contract. The question is, are these services and goods VAT exempt or subject to VAT reclaim ? Knowing that my company is already in the process of VAT registration. Any thoughts ? Thanks

Hi,

If you incur VAT after your date of registration then you can recover the VAT as input tax subject to the rules of input tax. You can see the guidance here:

Introduction to input tax

If you incur VAT before your VAT Registration date then you would need to have the goods on hand at the date of registration to reclaim this VAT as input tax. You can see the guidance here:

Input tax when VAT paid on goods and services received before VAT registration

Thank you.