The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance notes deals with the export issues that relate to specific transactions or industries, and should be read in conjunction with the Exporting goods ― overview, Economic Operator Registration and Identification Scheme (GB EORI) and Exporting goods ― evidence of export guidance notes.
See also De Voil Indirect Tax Service V4.304.
If more than two UK businesses are involved in a supply of goods that are subsequently exported, the first supply is likely to be liable to UK VAT. For example:
US Co orders some goods from a UK company 1
UK company 1 does not have the goods so sources them from another UK company 2
UK company 2 delivers the goods directly to US Co on behalf of UK company 1 and issues its invoice to company 1 charging UK VAT
UK company 1 issues an invoice to the US Co which can be zero-rated if evidence of export is obtained from company 2. See the Exporting goods ― evidence of export guidance note for more information on the requirements
Notice 703, para 4.1
It’s worth noting that in the scenario above there could also be a supply of services from UK company 2 to UK company 1 for arranging the export of the goods.
The VAT treatment of software depends upon whether it is off-the-shelf software or bespoke software.
Off-the-shelf or normalised software is normally treated as a supply of goods for VAT purposes and the supply can be zero-rated if the relevant export conditions are met. See the Exporting goods ― overvie
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