international trade - vat

International Trade - VAT

12 February 2014

Liam [email protected]

www.francisclark.co.uk

Agenda

• Selling to overseas customers

• Holding goods overseas

• Agency issues


Sending goods to customers in other EC countries

Sales to VAT registered customers in other EC countries

• Obtain customer’s VAT number

• Check validity of VAT number

• Show VAT number on invoice including 2 digit country prefix

• The goods are sent to another EC member state

• Obtain and retain proof that the goods have been removed within time limits

• If the above conditions are met the sale is zero-rated known as dispatches


Sending goods to other customers inother EC countriesreporting requirements

• VAT Return – reporting box 6 and 8

• EC Sales Lists

• Intrastats (2013 threshold - £250,000)


EC Trade – other issuesTriangular transactions

• Goods move from A to C

• Invoicing A to B and B to C

• Simplification when all parties registered for VAT


Sales of goods to other EC countriesNon-VAT registered customersDistance Selling

• Sales to non-VAT registered customers

• Distance selling rules could require registration in other EC countries

• Apply where goods sent from UK to EC country

• Record distance sales to each Member State

• Threshold either €35,000 or €100,000 (or own currency equivalent)


Sending goods outside ECDirect exports

• Zero rated as exports as long as criteria met

• Goods sent outside EC

• Proof obtained that goods removed

• Goods removed within 3 months or 6 months where goods involved in processing or incorporation prior to export

• Invoice should make country of delivery clear

• Delivery terms

• Include in box 6 on VAT return


Goods sent outside ECIndirect exports

• Customer arranges collection of goods

• Zero rated as exports as long as criteria met (as for direct exports)

• Customer belongs overseas

• Recommend obtain deposit equivalent to VAT

• Include in box 6 on VAT return


Holding stock overseas

• VAT registration may be required for sales made in destination country

• Some countries may have special procedures

• UK issues


Agency Issues

South Devon Export Network12 February 2014

Export Events Diary

Steve Southcott MIExInternational Trade Adviser

UK Trade & Investment

Tel: 07880 [email protected]

A World Leading Supplier of Propellers and Sterngear

A Complete propeller and stern-gear manufacturer based in Newton Abbot

13

The largest propeller and stern-gear manufacturer in Europe

14

• Sales and engineering design department • Accounts and credit control department • Pattern-making and propeller mould making workshops • Bronze and steel foundry for castings • Various machine shops • Propeller Finishing shop • Fabricating and welding shop • Inspection & testing laboratory • Storage, Packing & despatch

department

15

Our Facility Includes

16

What We Do

17

Vessels We Supply

18

How we got here

Our History

1974 Started Teignbridge 1975 Persuaded to start a small bronze foundry

1976 Started to supply Marine Projects 1976 Started to supply

Birchwood Boats range1977 Won large order from

Perkins Engines and manufactured our

first propeller

19

Engineering by MistakeThe first years

international trade - vat

Documents