Tax implications of non EU customers supplied directly from Far East

Question

Hello

We will shortly commencing supplying non EU customers with our products which are made in the Far East. They will be collected by the customer either ex works Far East or FOB far east.

On the ex works scenario am I required to charge vat or not, when invoicing the customer

On the FOB scenario am I right in assuming that I must pay Vat at the local rate? Do I then charge the customer on their invoice at the UK rate?

Any help would be appreciated.

Thank you

Answer

Hi there,

I hope you get an answer to your question shortly.

In the meantime, I recommend also looking at the Institute of Export and International Trade’s helpdesk for more specific advice:

http://www.export.org.uk/page/Export_Helpline

Export Action Plan