VAT for online store


My company is UK based, I am in business for over 3 yrs and VAT register, Now planning to expand my business, so started online store. I am confused as not able to find proper answer.
My Business is in UK
My company is VAT register in UK
Started online kids clothing business
— tricky part——-
My 100% clients are US based, they order online or calling me
when they buy clothes online, money is processed by paypal
once money is cleared, goods are sent from “Indian”
company they are responsible to send good, once goods are delivered to buyer, I take 20% commission and rest money is send to Indian company. Now my CA told me that I have to pay 20% VAT on goods sold, but when I checked GOV site its say I dont have, first its child clothes second goods are sent and received to non EU to can someone please advice me.


Hi Adam
Sales to customers outside the EU: If you are making supplies of goods to customers outside of the EU – no VAT is charged. The transaction is deemed “outside the scope of EU VAT”.

However – exporters must keep accurate records of their exports, including proof of export. Please see section 6 of VAT notice 703 – “VAT: Export of Goods from the United Kingdom” for further information, including what is required as “proof of Export”.
Hope this helps


Thanks Gilio

Exporter had to keep ” proof of export” even if I am not sending anything from UK

Indian company will send items from India to USA, I will only take payments online. do I have to ask to send me details of export VAT or its there responsiblity to deal with their CA.

Best regards


CA= charted accountant

Export Action Plan