EU ― specific transactions

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • EU ― specific transactions
  • Delivering goods via the post or courier
  • Letter post or airmail
  • Parcels
  • Couriers and fast parcel services
  • Distance selling
  • Temporary movements of goods
  • Installed or assembled goods
  • Goods sent for process, valuation and repair
  • Triangulation
  • Sales to diplomatic missions, consulates, international organisations and NATO visiting forces

This guidance note provides an overview of the VAT implications of specific types of transactions that can be undertaken within the EU.

HMRC Notice 725 
Delivering goods via the post or courier

Businesses that sell goods to customers in other EU member states can elect to send the goods via the post or a courier / fast parcel operator. The sale can be zero-rated as long as goods are sold to a customer with an EU VAT registration number that is valid in the country where the goods go to (subject to the triangulation simplification) and the supplier has satisfactory evidence that the goods have been removed from the UK. Please see the Supplies of goods within the EU guidance note for more information on the requirements.

Letter post or airmail

A business can zero rate the sale providing the following is undertaken.

The business must take the package to the Post Office together with a fully completed certificate of posting form which must be presented with the goods. The Post Office will stamp the certificate of posting and return this to the person posting the goods. Acceptable forms are:

  • form C&E 132 for single or multiple packages that are taken to the Post Office (see below)
  • form P326 which is available from the Post Office and can be used to post single items
  • a Certificate of Posting for International Mail Only or a Royal Mail Collection Manifest can also be used. These forms are obtained from the Post Office direct and can be provided by a Royal Mail driver if the package is collected from the business premises rather than taken to the Post Office. The driver must sign the certificate confirming that

More on Selling goods to overseas countries: