Do sales from US warehouse to US customers count toward VAT threshold?

Hello We are a UK company who transfer stock in bulk from our base in the UK to a USA warehouse. At this point there is no sale, it's simply a transfer of goods. A sale then takes place in the USA, and the product is dispatched from the USA warehouse to the customed based in the USA. Should these sales be counted and included when considering the VAT threshold please? Thank you

Hi,

Please see section 2.13 of the guidance below:

VAT on goods exported from the UK (VAT Notice 703)

Thank you.

Thank you but I have already read that 2.13 guidance and none the wiser as I cannot decrypter it. Therefore I would be incredible grateful if you could provide a definitive answer please.

Hi,

The movements do not form part of your turnover as the movement doesn't constitute a supply.

A transfer of goods from your UK business to a branch outside the UK is not a supply, but you must make an import declaration for any goods returned to the UK and retain the details. You can deduct any related input tax subject to the normal rules but do not include the value of any transferred goods as an output in box 6 of your VAT Return.

The subsequent sale of goods takes place outide the UK so this again is not a supply in the UK and is outside the scope of UK VAT.

Therefore neither of these movements or supplies will go towards your taxable turnover in the UK.

Thank you.