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Readers’ forum: Should VAT be charged on export of goods?

20 January 2025
Issue: 4969 / Categories: Forum & Feedback , VAT
UK supplier

One of my clients has a VAT problem with an export of goods through a third party. Here is the situation:

  • My client receives many orders for car parts from a prestige American manufacturer. In most cases my client will act as the exporter zero rate the invoice to the customer and retain proof of export.
  • For some supplies the American customer asks that my client ships the goods to another UK supplier; this UK supplier will incorporate the goods into their own shipment and send them in one container to America.
  • The UK supplier says that there is no way of evidencing my client’s goods within the delivery they are all included as part of the single shipment. This means that my client has no proof of export to support their zero rating.

My question is whether my client should charge 20% VAT to the...

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