VAT Minefield – where do we start?

Question

We are a £1.2m turnover company just starting to export and are baffled by the VAT procedures.

We want to export a product permanently (client purchase) and temporarily (client survey lease option) where the product will be returned to the UK.

We will also send out teams to install and remove the product so we are performing services as well.

We are looking to engage a company to help us with our VAT procedures on a case by case basis.

Thanks

Answer

Dear VAT Minefield – where do we start?

We have completed many VAT returns for clients and we would be happy to
assist you if we can.
If this would be of interest to you e-mail us at
enquiries@smam-group.com

Best regards
Andrew
SMAM Group

Answer

In addition to the VAT aspect, you will need to consider customs compliance elements to ensure that you pay correct levels of duty for return shipments.

The leased equipment should be returned to the UK and not attract duty/VAT on import, however it is important to ensure that the correct processes are applied during the initial export –

My company have a great deal of experience in supporting exporters, such as yourselves with these type of challenges. Please advise if you would like to schedule a brief call –

Brgds
Richard
rperriman@charleskendall.com

Answer

Hi there!

If you are exporting products or services outside of the EU you do not need to add VAT to your invoices.

For goods that are exporting and returning you can apply for outward processing relief (OPR). This means that you don’t pay import duty & VAT when the stock arrives back in the UK.

If you have paid VAT against any stock or materials that make up the permanent export consignment you can declare this in your tax returns.

If you need any further advice or have any questions, our Commercial Manager will be more than happy to be of assistance; please feel free to give Chris Murphy a call on 01376 505187.

Kindest Regards,
Jan

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