Charging an Israeli company VAT

Hello, I'll keep this as blunt as possible to keep straightforward. I am a London based VAT registered print firm. We have a new client that is registered in Israel. But also has an office registered in the UK. We have supplied them with printing to which we have delivered to another UK address. However they wish for us to invoice their Israeli company and has requested the VAT to be removed. Please advise as to wether they would be VAT exempt or not. Thank you.

Some printed matter is zero rated regardless of whether the goods are exported from the UK or not (books, magazines, newspapers, etc). Assuming that the printing you have supplied is not naturally zero rated (diaries, etc), then the supply is standard rated. The place of supply for goods is where they are at time they are supplied (UK) and you can only zero rate if you export the goods outside the of the UK. You can only zero rate goods when you have proof of export - https://www.gov.uk/hmrc-internal-manuals/vat-exports-of-goods-from-the-uk/vexp30400 Also this link section 6 https://www.gov.uk/guidance/vat-on-goods-exported-from-the-uk-notice-703#sect6 You will not have any proof of export if you have delivered the goods to a UK address. Even if the customer intends to export those goods to Israel later on (under Groupage rules, see section 7.5), you don't have the proof that they have or will do this unless you have a contractual term that requires the customer to give you proof of groupage export if they want to have the supply zero rated. If you had a VAT inspection and HMRC asked you for proof of export, you haven't got anything, HMRC would then likely assess you for the VAT that you failed to charge.

Hi Firstpointswm,
If you are supplying a printing service then the Place of Supply Rules determines where the service is deemed to take place..
The service would come under the General Rule of services and so the Place of supply is where the customer belongs.
If the customer belongs in the UK then the supply will be Vatable in the UK.
If the customer belongs overseas then the Place of supply is Outside the Scope of UK VAT.
Please see the guidance here:
6. The place of supply rules for services
It is therefore important to determine where the customer belongs for the supply.
Please see the guidance here:
Place of supply of services (VAT Notice 741A)
Thank you.