VAT on a courier collection that started in Guernsey?

Not quite Andy. That only applies to transport between 2 EU countries where the customer is based inside the EU but outside the UK.

If you carry out transport wholly within the UK then you have to charge VAT on it wherever your customer is based, EXCEPT if you carry out the UK leg of a delivery that starts or ends outside the EU. So if you were, for example, to collect goods from Portsmouth that had originated in the Channel Islands as part of a delivery from the Channel Islands to somewhere in the EU then you’re meant to zero-rate your charges.

The same is true if you collect goods from outside the EU from a freight forwarder for delivery in the UK – even though you’re just delivering UK to UK you’re meant to zero-rate the UK leg of the transport.

And if you’re delivering 100 consignments from various EU and non-EU countries on the same trip, on your round for TNT International say? According to the VAT office you’re meant to apportion the delivery costs to each consignment and zero rate the costs for the consignments that originated outside the EU!! And you’re meant to keep documentary evidence to justify the zero-rating.  http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000162&propertyType=document#P152_12255

Mostly everyone just ignores it and standard-rates everything, but if your customer is outside the EU and can’t reclaim the VAT then they could kick up a fuss if they wanted.

Posted under VAT

Posted by Alec at 6:04 pm, November 22, 2007

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