Bill to UK address, deliver to EU

Hi, Do I 0 rate the sale when the invoice address is UK and the delivery address is EU?

The customer is VAT registered in UK and he arranged the transport to France.

Thank you.


As usual the HMRC documentation is ambiguous. It looks like if they give you their French TVA number, they’ve arranged for a third-party courier to collect the goods and they give you evidence that the goods have actually left the UK then you could zero rate it (treating it as a supply from you - VAT registered in the UK - to their French TVA-registered entity). But if they don’t give you their French TVA number, or they are collecting the goods from you themselves in the UK rather than using a separate courier then it’s a supply from you to their UK entity for VAT purposes which is subject to normal UK VAT, and they would then be the ones responsible for accounting for the movement from the UK to France (as a dispatch on their UK VAT return and an acquisition on their French TVA return).

You must not zero rate a sale, even if the goods are subsequently removed to another member state, if you:

  • supply the goods to a UK VAT-registered customer (unless that customer is also registered for VAT in another member state, in such cases they must provide their EU VAT registration number and the goods must be removed to another EU member state)
  • deliver to, or allow the goods to be collected by, a UK customer at a UK address

(I’m not an accountant or solicitor so don’t take this as gospel, it’s just my interpretation of that HMRC document on the web)

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