Do I pay VAT on goods bought from a UK company but which ship directly from China to the USA?

Question

I am setting up a UK company and am working on an exclusive agreement with another UK company to distribute and sell their product in the USA. The product would be manufactured in China and shipped directly to the USA i.e. it would not land in the UK at all.

The question that I haven’t been able to answer is… would I have to pay VAT on the product?

Answer

Hi Julia

I have a contact at a large UK Logistics Company that could very well answer that question. Please let me know if you need their details and I will make the introduction.

On another note, while my response is not really related to your question regarding VAT payments (apologies), if you are looking for awesome FX rates when you invoice your client (I’m guessing in USD), by all means please contact ParityFX Plc on 0207 112 1530 or www.parityfx.com

We will be delighted to help you exchange your foreign currency back into GBP at unbeatable rates.

Thanks and regards,

David (Joint CEO)

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