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bigduckontax, Accountant
Category: Tax
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I have sold t shirts online from the UK in a company that is

Customer Question

I have sold t shirts online from the UK in a company that is VAT registered. The t shirts are manufactured in the USA and then sold to people in Australia, New Zealand and the USA. I'm very confused because I never added VAT on top of the price. Does anyone know the situation with the VAT in the UK for these sales. I sold $200,000 worth
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
Just to make clear. This is online sales. I sold online to USA, Australia and new zealand. I quoted dollars above because people paid in US dollars.
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
This is a Dad's Army 'Don't Panic!' situation. Sales by an UK company to these countries are subject to VAT, but at a rate of 0%. They are an export, a zero rated supply. However the value of the sales should be included in the 'sales' figure in the quarterly VAT return, all converted to sterling, of course.
HMRC may inquire why there is no VAT being collected on these sales and you would merely inform them that they were zero rated supplies.
I do hope that I have been able to set your mind at rest on this matter.
Customer: replied 1 year ago.
hi thanks for that. I was just worried I would have to pay 25K in vat? I was so worried about this
Expert:  bigduckontax replied 1 year ago.
No, not at all, you are merely helping the British economy by exporting!
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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