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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5027
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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We are a uk company and sell shoes made in China direct to

Customer Question

we are a uk company and sell shoes made in China direct to another UK company who pay for the freight , duty, clearance and vat when the goods enter the UK ( they go direct to their warehouse ). The invoice they use to clear the goods is our invoice to them and it's in US$ ( same as they pay us ). My question is should my invoice to the UK customer include VAT or not?
Many Thanks
John
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.As you are making a taxable supply to your customer based in the UK, you should charge VAT on those sales and your invoice to your UK customer should include VAT.More information on this can be found herehttps://www.gov.uk/vat-businesses I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Customer: replied 1 year ago.
Thank you for this, the customer will have paid VAT on the goods when they enter the country, and then it they pay VAT to us when we invoice them, is this not a double VAT payment?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply. You have stated that the customer uses your invoice to clear the goods and pay VAT based on it.You should include VAT in that original invoice to the customer. This way you only raise one VAT invoice.If you have to raise a second invoice then the customer should attach it to your original invoice, thus avoiding double VAT payment. I hope this is helpful and answers your question.
Expert:  taxadvisor.uk replied 1 year ago.
Hi there, I hope the information provided to you clarified your concerns. If you still need further help, please let me know.