As per the regulations set out by HM Revenue & Customs, VAT is payable without exception in the following cases:
VAT may be zero rated at the point of sale in the following cases:
- Goods purchased by a UK resident, dispatched to a UK address for resale within the UK
- Goods purchased by a UK resident, dispatched to a UK address for resale in the EU
- Goods purchased by a UK resident, dispatched to a UK address for resale outside the EU
- Goods purchased by an EU (Non UK) resident, dispatched to an EU (Non UK) address without a valid VAT number for that country
VAT may be reclaimed in the following case:
- Goods purchased by an EU (Non UK) resident with a valid VAT number for that country. This will be required before the sale is concluded and will be checked on the Europa VAT Validation website. PLEASE NOTE; If the VAT number does not validate or appears to belong to another party without due reason, VAT will be charged.
- Goods purchased by a Non EU customer where the goods are being sent by Ds Packaging Ltd
- Goods purchased by a Non EU customer (and not UK Resident) within the UK for resale outside the EU or, on behalf of a customer outside the EU. Ds Packaging Ltd does not specialise in exporting to Non EU countries and therefore shipping costs can be considerably high. If the customer can arrange their own shipping at a cheaper cost then the following steps shall apply.
RC RULES FOR EXPORT
3.3 Conditions for zero rating direct exports
- The customer purchases the goods and VAT is charged. The destination name, full destination address and destination contact telephone number must be provided before conclusion of the sale
- The goods are sent to a UK address so the customer can complete the shipping.
- Once shipping has taken place, the customer must, within 3 months of purchase, provide Ds Packaging Ltd with shipping confirmation of the goods purchased by email. The shipping documents must contain the destination details as listed in Step 1 and notes of the goods as purchased. NO OTHER DOCUMENTATION WILL BE ACCEPTED. ANY DOCUMENTATION WITHOUT THE FULL CORRECT INFORMATION WILL NOT BE SUBJECT TO A REFUND OF VAT. This is full and final and irrespective of any other agreements you may have with any other companies.
A supply of goods sent to a destination outside the EC is liable to the zero rate as a direct export where you:
- ensure that the goods are exported from the EC within the specified time limits (see paragraph 3.5)
- obtain official or commercial evidence of export as appropriate (see paragraphs 6.2 and 6.3) within the specified time limits
- keep supplementary evidence of the export transaction (see paragraph 6.4), and
- comply with the law and the conditions of this notice.
You must not zero-rate a direct export where you:
- deliver or post the goods to a customer’s address in the EC (including the UK), or
- allow the goods to be collected by or on behalf of your customer even if it is claimed they are for subsequent export. See paragraphs 3.6 and 7.4 for details of deliveries made to another UK trader for groupage, consolidation, processing or incorporation prior to export.
FOR ANY FURTHER INFORMATION, PLEASE VISIT HMRC WEBSITE