Advice on VAT for goods shipping to Gibraltar via a Freight Company in the UK

We have had an order placed by a company in Gibraltar that has given us a shipping address of a freight company in the UK so at the moment we have charged VAT. Our customer is adamant that we should reinvoice without the VAT as we will get a certificate of shipping from the freight company and can then claim the VAT back - Is this correct, please?

Hi Sammie You can zero rate the VAT for export however you are right to be cautious if you are not in control of the goods actually exported. Do you trust the customer in Gibraltar to give you all the proof of export you need to support proof of export.? If the freight agent / customs agent are engaged by your customer they have no obligation to you to provide any export documentation. There is the option of charging the VAT and then refunding only once you have received all the proof of export. https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroad On another point a non UK company cannot be declared as the exporter from the UK therefore there is a risk they will use your company name. You will then inadvertently become responsible for the accuracy of that declaration you had no control of.

Hi.

If the conditions are met for an export of goods from the UK then this supply will be at the zero rate of VAT. Please see the guidance here:

Conditions and time limits for zero rating

Thank you.