Correct VAT and billing procedure for export?

Question posted by Alexander De Kegel, on behalf of Twelve & Co. in BS9

My UK based company is currently involved in a project that involves the export of construction material from the producer in Czech Republic to a buyer in Azerbaijan. We negotiate with the client and make profit through adding on a % of the price. What is the correct procedure regarding VAT and billing in this situation?

Posted:
Report inappropriate content

David Bill, on behalf of ChemPlex Ltd in EH48.

If you, or the company in the Czech republic invoice the buyer in Azerbaijan it will be a zero rated for VAT

Posted:
Report inappropriate content

Gd day. I apologise that i am not able to answer your question but I would like to let you know that i have friends regularly moving empty rail wagons from Czech Republic to Ukraine. Depending on the product they might be interested in carrying your material. Have you tried talking with your own accountants?
Kind regards, Chris Hibbert - Budmar Shipping Ltd
Tel: 01923 836192

Posted:
Report inappropriate content

Alexander -
There are two possible aspects to this – neither of which involve VAT.
1.If the company is invoicing the goods to the buyer in Azerbaijan and receiving purchase invoices from the company in the Czech Republic then it is an EU based business to business transaction and provided all parties have VAT Registrations in their relevant countries there is no VAT involved.

2.If the company is only invoicing the percentage mark up on the goods to the customer then it falls under place of supply rules but under those rules there is still no VAT payable.

Because the goods never physically enter the country there is no EC Sales List required either.

Hope that is concise and helps your cause.
regards,
Brian Mclean

Meridian Marketing International Ltd
www.meridian-mkt.com

Posted:
Report inappropriate content

To respond to this question, please Login or Register