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The evidence that is required for a supply of goods exported outside the UK or EU to be zero-rated for VAT you must produce either official or commercial evidence as described below. Equal weight is put on official and commercial transport evidence but both must be supported by supplementary evidence to show that a transaction has taken place, and that the transaction relates to the goods physically exported.<\/p>\n
Official evidence is produced by customs systems, for example\u00a0GDMs\u00a0generated by\u00a0NES.<\/p>\n
This describes the physical movement of the goods, for example:<\/p>\n
Photocopy certificates of shipment are not normally acceptable as evidence of export, nor are photocopy bills of lading, sea waybills or air waybills (unless authenticated by the shipping or airline).<\/p>\n
You are likely to hold, within your accounting system some or all of the following:<\/p>\n
You must hold sufficient evidence to prove that a transaction has taken place, though it will probably not be necessary for you to hold all of the items listed.<\/p>\n
Vague descriptions of goods, quantities or values are not acceptable. For instance, \u2018various electrical goods\u2019 must not be used when the correct description is \u20182000 mobile phones (Make ABC and Model Number XYZ2000)\u2019. An accurate value, for example, \u00a350,000 must be shown and not excluded or replaced by a lower or higher amount.<\/p>\n
If the evidence is found to be unsatisfactory you as the supplier will become liable for the VAT due.<\/p>\n
The next 7 bullets have the force of law.<\/p>\n
The evidence you obtain as proof of export, whether official or commercial, or supporting must clearly identify:<\/p>\n
Typically this occurs when goods are supplied ex-works. If your overseas customer arranges for the goods to be collected from your premises and exported to a place outside the UK or EU member states it can be difficult for you, as the supplier, to obtain adequate proof of export as the carrier is contracted to your overseas customer. For this type of transaction the standard of evidence required to substantiate VAT zero rating is high.<\/p>\n
Before zero rating the supply and releasing the goods to your customer, you must confirm what evidence of export is to be provided.<\/p>\n
You, the supplier, will become liable for payment of the VAT if the evidence of export:<\/p>\n
For these reasons you should consider whether to:<\/p>\n
The deposit can be refunded when you obtain evidence that proves the goods were exported.<\/p>\n
Evidence must show the goods you supplied have left the UK or EU. Copies of transport documents alone will not be sufficient. Information held must identify the date and route of the movement and the mode of transport involved. It should include the following:<\/p>\n
To substantiate zero rating a transaction you must make sure that the proof of export is:<\/p>\n
If you do not hold the correct export evidence, within the appropriate time limits, then the goods supplied become subject to VAT at the appropriate UK rate.<\/p>\n
If you use a freight forwarder, consignments (often coming from several consignors) may be aggregated into one load, known as groupage or consolidation cargo. The freight forwarder must keep copies of the original bill of lading, sea waybill or air waybill, and all consignments in the load must be shown on the container or vehicle manifest. You will be issued with a certificate of shipment by the freight forwarder, often supported by an authenticated photocopy of the original bill of lading, a sea waybill or a house air waybill. Where such consignments are being exported, the forwarder is usually shown as the consignor in the shipping documents.<\/p>\n
(a) Certificate of shipment<\/p>\n
What information must be shown<\/p>\n
Although the certificate of shipment can be in any format, it must be an original and will usually contain the following information:<\/p>\n
Where you send goods by road through EU member states (for example to Dover and across the EU before final export), or where you move goods from the UK to an airport in an EU member state before final export, this is an export through an EU member state. If you export to non-UK and non-EU countries via EU member states, you will require either official proof of export for VAT purposes or commercial transport evidence that the goods have left the EU to substantiate the zero rating of the supplies.<\/p>\n
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