Skip to main content

This is a new service – your feedback will help us to improve it.

  • RE: Zero-rating exports

    Hi, I've read the guidance, believe that I understand the position, but would like to check this. Is there a VAT helpline number that I can discuss this matter with? Thanks, 

    Name removed admin .
  • Zero-rating exports

    We manufacture goods in the UK, We export those goods from the UK; the customer imports those goods into Ireland. DAP incoterms. The Irish customer would like us to bill them for a batch of goods such that they become the owner of the goods; however, they would like us to delay delivery (i.e., export from the UK) for two months. We would hold those goods (now legally owned by the customer) in our warehouse for two months. We would then export those goods from the UK, and the customer would import the goods into Ireland (Incoterms DAP Dublin). The goods would always be under our control whilst in the UK, and we would be the exporter of record from the UK. Would this scenario, noting that the goods (now legally owned by the customer) will be exported within three months of the date of the sale, qualify for zero rating? This appears to be the case based on VAT Notice 703 and VEXP30300, but I wanted to check.
  • RE: Boxes 6 and 7 - include amounts or leave them out?

    Hi, Would it be possible for an HMRC Admin to provide guidance here? If any further information / clarification is required, please would you let me know. Thanks, James
  • RE: Boxes 6 and 7 - include amounts or leave them out?

    Hi Jason, Thank you for your reply. Your response makes it clear how important precise language is in the world of tax, and VAT specifically. My question should have noted that we will purchase goods from a German company, rather than purchasing goods in Germany. The German supplier will be exporting the goods from Germany, and we will take ownership on the high seas. The sale will be reported by the German company as a zero-rated export. We will not be registering for German VAT. Is your point that you would expect the purchase and the sale to be recorded in "a" VAT return of my UK company? Therefore, if we do not record the purchase in a German VAT return (because we have no German VAT obligations / filings) then we must include it in our UK VAT return (being our only VAT return)? Is that the same with sales? Is your point that we should record these purchases and sales transactions in "a" VAT return of the company? I'm guessing you're making the same point re hotel costs, that we need to include these somewhere; if we have no other appropriate VAT return to include the purchase in, then it should go into the UK VAT return? I note your point regarding VAT recovery. Apologies if I'm missing something obvious, but I couldn't find any wording in section 4 that would make the position clear to me... Thank you for your response, and for reminding me the choose my words more carefully when discussing VAT. Regards, James
  • Boxes 6 and 7 - include amounts or leave them out?

    Hi, I'm unclear whether a few items should be included within Boxes 6 and 7, Sales and Purchases, or be excluded. We are a UK based manufacturing company. We will purchase goods in Germany that will be transported directly to the customer in North America. Those goods will never enter the UK. Should the purchase of the goods be included in box 7 (noting that the goods never enter the UK) or excluded? There will be no UK VAT on the sale as the goods are never in the UK. Should we exclude those sales from box 6 of our VAT return, or include them? Our UK team members have overseas work trips and we incur costs in relation to overseas hotels etc. Should the hotel cost be reported in Box 7 where (a) the overseas hotel charge is paid directly by the company; and (b) where the cost is settled by the employee and then reimbursed by the company. Thank you
  • Entertainment of employees: incidental

    The HMRC guidance at "BIM45034 - Specific deductions: entertainment: exceptions: entertainment of employees: meaning of incidental" provides the following example: "In contrast, where the employee takes the customer out to lunch at a restaurant, the whole cost of the lunch for both the employee and the customer is business entertainment and is not allowable. This is because the company would not have paid for the lunch if the guest had not been present and so the employee’s lunch is incidental to that of the customer." In this scenario, is there a taxable benefit in kind on the employee? i.e., where a PSA is in place, would the cost of the meal for the employee need to be reported under the "Staff lunches" category? In case relevant, let us assume that the employer does not generally provide meals to employees.
  • Import declarations by couriers (imports into GB from the EU)

    I receive my monthly MSS imports data from HMRC. This includes details of import declarations made by carriers such as FedEx, UPS, and DHL. The carriers claim preference on goods imported into the UK from the EU even where there is no statement of preferential origin. They do this without checking with me first. I have continually queried this with them, as I want to ensure that I am compliant with the customs rules, but they generally ignore my emails. I have finally received responses from two of the couriers: FedEx: "In the instances of good made in the EU valued below £1000, FedEx can apply duty waiver without preferential statement." UPS: "The brokers are instructed to use Importers knowledge up to 1000 GBP without permission" Is what the couriers saying correct? Is there any published guidance regarding this? I've struggled to find anything so far. What should I be doing where I do not have the relevant paperwork to demonstrate that the goods have EU preferential origin? Are there any wide exemptions that mean that I should effectively ignore the duty issue on goods being imported into GB with a value of £1,000 or less?
  • Plastic Packaging Tax ("PPT") - Outward processing

    Hi, Are there any special rules or reliefs in relation to plastic packaging exported under Outward Processing arrangements? i.e., reusable plastic pallets that fall within the scope of the PPT regime are exported from the UK to the EU for cleaning and repair; the outward processing regime is used. The reusable plastic pallets are then reimported into the UK under the outward processing regime. Does the PPT regime impose the tax at the time of import, with a prior reclaim being made where the necessary conditions are met? Thanks
  • RE: Pension Salary Sacrifice

    Hi, Please can I clarify the points above. Salary sacrifice is introduced at the start of 2023: In January 2023, an employee agrees to a change in their terms and conditions such that they exchange 10% of their salary for a employer contribution to their pension. In February 2023, that same employee agrees to a change in their terms and conditions such that they now exchange only 5% of their salary for a employer contribution to their pension. In March 2023, that same employee agrees to a further change in their terms and conditions such that they now exchange 10% of their salary for a employer contribution to their pension. I understand that this is okay, provided that each amendment is a formal change to the terms and conditions, AND provided that the employee has no unilateral right make month by month changes... Please would you confirm the position. Thanks
  • XI VAT number

    If we are making sales in Northern Ireland, i.e., from a warehouse in Northern Ireland to a customer site in Northern Ireland, do we simply use our GB VAT number? Do we only use our XI VAT number if we are making a sale to a customer based in the Republic of Ireland?