Cattay
Joined: 10/22/2024
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Place of supply where customer's customer is named importer
If a UK company sells FCA (named exporter) to an overseas customer but the named importer is the overseas customer's own customer, where is the place of supply for the sale UK co to overseas customer ? ie the customer of the UK company is not named as either exporter or importer. I assume it is a zero rated export by UK company to their customer in the destination country (even though they are not named as importer) and then a domestic supply in the destination country from the UK's overseas customer to their own customer. Is this correct, and if so would this require the Uk's customer to have a VAT registration in the destination country and charge VAT in that country to their own customer ? -
RE: VAT on Overseas Transactions
Thank you -
VAT on Overseas Transactions
We are a UK VAT registered company and we will be selling some of our goods ex works to a French VAT registered company but the goods are being collected from our stores in the UK by a Canadian customer of the French company and being shipped back to Canada by their customer.
The French company is selling the goods to their Canadian customer ex works from our store.
Are we correct in thinking that as long as all the conditions in VAT notice 703 section 3.4 are met, that we can invoice our French customer with zero rated VAT as an indirect export and that the French company can also invoice their customer without VAT as it is both an indirect export and the goods do not enter France ?
As the goods are being collected from our store we know that they are being exported within the specified time limits , and we have asked that shipping documents are provided to us as export evidence.
The guidance states that "an indirect export occurs when your overseas customer or their agent collects or arranges for the collection of commercial goods from you the supplier within the UK and then takes them outside of the UK".
Does the fact that our French customer has arranged for their customer to collect the goods from us in the UK and take them overseas therefore qualify (assuming all the specified conditions are met as per Notice 703) ?