James

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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 .

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.

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

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

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

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.