VAT

Question posted by Kris Mews, on behalf of OK MEWS LTD in Somerset

Hello, I have UK registered business. I am going to export clothing and footwear. Because I am going to buy supplies from UK businesses I have to pay VAT. But I can not charge VAT my overseas customers. Will I have VAT return? If so how? Can I go to HMRC website to find out? Could anybody help and give me a clue where to search for advice, please? Many thanks in advance.

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Lyn Palmer, on behalf of Business West in BS8.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageExcise_ShowContent&id=HMCE_CL_000130&propertyType=document

Hello there
Above is the link to HMRC site

Regards
Lyn

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You will have to register for VAT to be able to claim the VAT back on your purchases.

If you are planning to sell within the EU you will need to get the VAT numbers of the customers that you are selling to and at the end of each month or quarter, depending upon your trading volume you will have to complete an EC Sales list. This is a list of all the sales that you have made to each of the VAT registered businesses that you supplied in the period. Although this seems complicated, if you have an accounts package such as Sage Instant accounts it is very straight forward and easy to extract the information you need from the package.
Sales outside the EU are not dealt with in the same way. There is no recording of sales outside EU for VAT purposes.

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Fiona Johnson, on behalf of Vellag Ltd in SP3.

You don't charge VAT on exports to the EU or further afield. There may be import tax & VAT payable at the other end though so make sure you check that out too.
I suggest that even if you are under the VAT threshold you register for VAT as you will need to get the VAT back on your purchases to make your business commercially viable. If you regularly get a refund, you can also apply to do your VAT returns monthly which will help with your cash flow.
The VAT helpline is usually staffed by helpful and informed people so give them a call if you need advice.
Good luck!
Fiona

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You only pay vat on adults clothing in UK, there are guidelines on how to determine which is which. Protective clothing is also non-vat in purchasing.
You don't charge the vat in your export invoices and you reclaim the vat you pay when purchasing adults clothing in UK. Very simple.

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Neil Fraser, on behalf of Urban Import Export Ltd in FK8.

Perhaps a more simplistic answer, if you are VAT registered and pay out more VAT on your supplies than you charged on your invoices then you could claim back the difference on you VAT return and as such you don't have to incorporate the VAT in your retail price making you more cost efficient.

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