Question about how to file a return for export directly form EU to China

Dear Sir/Madam, Our company is a UK company registered in England. we purchased products from the EU and exported products from EU directly to China, never imported the products into the UK. I have several questions as follows: 1. Does our supplier issue an invoice to us should include UK VAT? 2. Do we need to file the return including the export sale turnover? 3. How do I file the return correctly? Best Regards.

 

Hi. If the goods have never entered the UK then the supplies are Outside The Scope of UK VAT. The supplier would not charge UK VAT and your supply would also be Outside The Scope of VAT. The transactions would therefore be left off the UK VAT return  . Thank you .

If you (UK company) has bought goods in EU and those goods have been exported from the EU to China (or anywhere), then you (UK) appear to have purchased goods in the EU, the place of supply of goods is where the goods are at time of purchase....so the EU supplier will charge you EU VAT which you cannot reclaim on a UK VAT return, and the UK company has likely triggered a VAT registration in the EU member state where the supplier is located. HMRC are correct that your UK sales to China/elsewhere end customer is outside the scope of UK VAT, but this is because it is subject to VAT in the EU somewhere.