UK VAT into non EU countries

[Simon Purchasing]

Hi there

I work for an IT reseller in the UK, with a client outside Europe

I can't charge them VAT, but I will be charged VAT myself as I will be sourcing goods in the UK, and shipping out to them

Am I able to reclaim that VAT?
If so, how would I prove that what I've ordered (and paid VAT on) was sold to a customer that was VAT exempt? Provide invoices when doing the VAT return?

If I am NOT able to reclaim that VAT, should I be taking my GROSS price, and then adding margin?

I appreciate that someone in my organisation should know this already, but I'm keen to learn for myself

Thanks
Simon

 

[Tungsten]

You should absolutely be able to reclaim the VAT back as it is the end consumer that pays this. In your case the goods are being exported, so no VAT is chargeable to a NON EU Country.

 

[cooper1210]

Yes, just to add, you can claim back all of the VAT, it doesn't really matter where you selling it to.

The only difference is that when you're invoicing the customer, you simply invoice the Net sales amount and the invoice is exempt from VAT.

For example a typical invoice would be £100 + VAT = £120

An invoice to someone outside EU would be £100, no VAT required.

As mentioned above, VAT is a taxable on the end user, but only when they are within the EU

 

[Mike Wilford]

Will this be affected by todays referendum vote?!

 

[cooper1210]

Will this be affected by todays referendum vote?!

Not at all