Chapter 18 - International Aspects - Goods

Question 1

Introduction

Answer 1

When dealing with international goods, initially focus on place of supply.
Goods leaving UK = UK PoS
Goods arriving = No UK PoS
If there’s a UK PoS, consider the UK implications.
It’s irrelevant where the supplier is based, if they have a UK supply of goods, they need to consider the VAT obligations

Question 2

Exports

Answer 2

UK trader sells goods to a customer outside the EU. PoS is UK as goods are leaving.
Zero rated regardless of what is being sold
Must have evidence goods have been exported e.g a bill of landing or air waybill

Question 3

Note

Answer 3

HMRC Notice 703 is useful

Question 4

Imports

Answer 4

When goods arrive from a non-EU supplier.
No UK PoS as goods are arriving.
VAT is due and the importer must account for it where they’re named on the import documentation.

Question 5

Import VAT Payment

Answer 5

The rate applied is the rate that would be applicable if it was a UK good.
VAT can be paid straight away, or regular importers can set up a line of credit with HMRC for deferred payment.
It’s treated the same as regular VAT and will be deducted the normal way on the next VAT return

Question 6

Paperwork

Answer 6

Trader must have sufficient evidence to prove goods have been exported
Importers must fill in valuation forms and pay import VAT