VAT on Sales Invoices to Israel

Question

We have received an order from an Israeli company who will require the goods to be shipped directly from our parent company in Germany directly to Eire.

We are invoicing from the UK, as the order is between ourselves and the Israeli company. Do we need to invoice VAT at 20% to Israel?

Urgent answer required if possible! I have queried this with HMRC and no response still after 10 days.

Answer

No, if the goods never enter the UK at any stage, the supply is outside the scope of UK VAT and no UK VAT would be chargeable. The place of supply of goods is explained in paragraph 4.8.2 of VAT Notice 700 – The VAT Guide. https://www.gov.uk/government/publications/vat-notice-700-the-vat-guide

As the place of supply is another Country I would advise you to contact the tax authorities there, as you may be liable to account for VAT or register in that Country. Details of contact addresses and other useful information provided by the VAT authorities in other Member States can be found on the European Commission website:

http://ec.europa.eu/

HM Revenue & Customs
Customs International Trade & Excise
www.hmrc.gov.uk/contactus

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