International Trade - VAT

1. 12 February 2014 • Liam Dushynsky • liam.dushynsky@francisclark.co.uk International Trade - VAT

2. Agenda • Selling to overseas customers • Holding goods overseas • Agency issues

3. Sending goods to customers in other EC countries Sales to VAT registered customers in other EC countries • Obtain customer’s VAT number • Check validity of VAT number • Show VAT number on invoice including 2 digit country prefix • The goods are sent to another EC member state • Obtain and retain proof that the goods have been removed within time limits • If the above conditions are met the sale is zero-rated known as dispatches

4. Sending goods to other customers inother EC countriesreporting requirements • VAT Return – reporting box 6 and 8 • EC Sales Lists • Intrastats (2013 threshold - £250,000)

5. EC Trade – other issuesTriangular transactions • Goods move from A to C • Invoicing A to B and B to C • Simplification when all parties registered for VAT

6. Sales of goods to other EC countriesNon-VAT registered customersDistance Selling • Sales to non-VAT registered customers • Distance selling rules could require registration in other EC countries • Apply where goods sent from UK to EC country • Record distance sales to each Member State • Threshold either €35,000 or €100,000 (or own currency equivalent)

7. Sending goods outside ECDirect exports • Zero rated as exports as long as criteria met • Goods sent outside EC • Proof obtained that goods removed • Goods removed within 3 months or 6 months where goods involved in processing or incorporation prior to export • Invoice should make country of delivery clear • Delivery terms • Include in box 6 on VAT return

8. Goods sent outside ECIndirect exports • Customer arranges collection of goods • Zero rated as exports as long as criteria met (as for direct exports) • Customer belongs overseas • Recommend obtain deposit equivalent to VAT • Include in box 6 on VAT return

9. Holding stock overseas • VAT registration may be required for sales made in destination country • Some countries may have special procedures • UK issues

10. Agency Issues

11. South Devon Export Network 12 February 2014 Export Events Diary Steve Southcott MIEx International Trade Adviser UK Trade & Investment Tel: 07880 722921 steve.southcott@uktisouthwest.org.uk

12. A World Leading Supplier of Propellers and Sterngear

13. A Completepropellerand stern-gear manufacturer based in Newton Abbot

14. The largestpropeller and stern-gear manufacturer in Europe

15. Our FacilityIncludes Sales and engineering design department Accounts and credit control department Pattern-making and propeller mould making workshops Bronze and steel foundry for castings Various machine shops Propeller Finishing shop Fabricating and welding shop Inspection & testing laboratory Storage, Packing & despatchdepartment

16. What WeDo

17. VesselsWeSupply

18. How we got hereOur History

19. Engineering by Mistake The first years 1974Started Teignbridge 1975Persuaded to start a small bronze foundry 1976Started to supply Marine Projects 1976Started to supply Birchwood Boats range 1977Won large order from Perkins Enginesand manufactured our first propeller