Hi normally where exporting and removing VAT we ship purchases ourselves and therefore have the proof. From my understanding for this to happen we must do so within three months of invoicing, declare at full value and have proof of export from the shippers,
I have a client who wants to export his purchase himself. Can i remove the VAT still and what documents would i require from the client? Would he still have to declare the purchase at its full purchase price?
From my understanding, you can only remove the VAT when you have the documentation to prove that the goods have been shipped. If they can't prove it, you will need to charge him the VAT.
The "Exporter" for VAT Zero-rating purposes either:
- Suppplies or owns goods and exports or arranges for them to be exported to a destination outstide the EU
or
- Supplies goods to an overseas person, who arranges for the goods to be exported to a destination outside the EC.
If your client is "an overseas person" and can provide proof to you that the goods are exported to a destination outside the EC then you can Zero-rate the goods. If they are shipping the goods, then they they will have the paperwork to provie it.
-- Edited by YLB-HO on Monday 5th of September 2011 12:06:37 PM
It is what this paperwork must show that is my real issue. I.e. must it show the full purchase value of the goods purchases? I.e. our client wants to avoid paying the full import taxes at customs by declareing a lower value on the customs paperwork.
If you know the answer would be greatly appreciated, and also if possible a link I could send the client that clearly states what they must supply.
looking at HMRC online it says proof of export must show an accurate price, otherwise the supplier is liable (as they zero rated the goods). Is this really a legal way to avoid the import taxes?
