VAT Explained

As per the regulations set out by HM Revenue & Customs, VAT is payable without exception in the following cases:

- Goods purchased by a UK resident, dispatched to a UK address for resale within the UK

- Goods purchased by a UK resident, dispatched to a UK address for resale in the EU

- Goods purchased by a UK resident, dispatched to a UK address for resale outside the EU

- Goods purchased by an EU (Non-UK) resident, dispatched to an EU (Non-UK) address without a valid VAT number for that country

 

VAT may be zero-rated at the point of sale in the following cases:

- Goods purchased by an EU (non-UK) resident with a valid VAT number for that country. This number will be required before the sale is concluded and will be checked on the Europa VAT Validation website. PLEASE NOTE: VAT will be charged if the VAT number does not validate or appears to belong to another party without due reason.

- Goods purchased by a non-EU customer where Wholesale Clearance UK Ltd sends the goods.

 

VAT may be reclaimed in the following cases:

- Goods purchased by a non-EU customer (and not a UK Resident) within the UK for resale outside the EU or on behalf of a customer outside the EU. Wholesale Clearance does not specialise in exporting to non-EU countries so that shipping costs can be considerably high. The following steps shall apply if the customer can arrange shipping at a cheaper price.

1 - The customer purchases the goods, and VAT is charged. The destination name, full destination address, and destination contact telephone number must be provided before the sale is concluded.

2 - The goods are sent to a UK address so the customer can complete the shipping.

3 - Once shipping has taken place, the customer must, within three months of purchase, provide Wholesale Clearance with shipping confirmation of the goods purchased by fax or email. The shipping documents must contain the destination details listed in Step 1 and notes of the goods as purchased. NO OTHER DOCUMENTATION WILL BE ACCEPTED. ANY DOCUMENTATION WITHOUT THE FULL CORRECT INFORMATION WILL NOT BE SUBJECT TO A REFUND OF VAT. This is full and final, irrespective of any other agreements you may have with any other companies.

HMRC RULES FOR EXPORT

3.3 Conditions for zero-rating direct exports

The text in this box has the force of law

A supply of goods sent to a destination outside the EC is liable to the zero rate as a direct export where you:


  • ensure that the goods are exported from the EC within the specified time limits (see paragraph 3.5)
  • obtain official or commercial evidence of export as appropriate (see paragraphs 6.2 and 6.3) within the specified time limits
  • keep supplementary proof of the export transaction (see paragraph 6.4), and
  • comply with the law and the conditions of this notice.

You must not zero-rate a direct export where you:

  • Deliver or post the goods to a customer's address in the EC (including the UK) or
  • Allow the goods to be collected by or on your customer's behalf, even if it is claimed they are for subsequent export. See paragraphs 3.6 and 7.4 for details of deliveries made to another UK trader for groupage, consolidation, processing or incorporation before export.

FOR ANY FURTHER INFORMATION, PLEASE VISIT:

HMRC Customs