Someone from the channel island wants my good VAT free

[smokeyplc]

Hello,

Am hoping someone could possibly help me or point me in the right direction.

I have a customer in the channel islands who is adament he gets all goods from the UK VAT free.

He has purchased a camera from me and wants me to revise the cost to show the net amount so he can pay a lower cost for it.

I have already stated to him that all our products are inclusive of VAT and that it is his responsibility to claim the VAT back.

It's a slight grey area for me as all documentation I find on the web points to it being a VAT haven.

Please could somebody help me, it would be greatly appreciated.

Thanks

Lewis

[Kitty Kat]

I believe that the Channel Isles are outside the UK and outside the EU, so it is an export and treated the same as you would for sales to, say, India, i.e. ZR.

[Generix]

I believe that the Channel Isles are outside the UK and outside the EU, so it is an export and treated the same as you would for sales to, say, India, i.e. ZR.

Kitty rightly states that the Channel Isles are outside the VAT territory of the EU, therefore treatment as suggested applies.

Note that in order to zero rate the supply you must have evidence of export.

Channel isles enjoy a special status as they are outside VAT territory of EU but within the Customs territory.

[Generix]

Also note that commercially speaking, if your price is e.g. a retail price which is, for example, claused with "inclusive of VAT where applicable".

Then provided you haven't issued a VAT invoice showing any VAT, then you may still keep the full amount.

If you have issued an invoice, you could always credit it by way of credit note, and then issue a new invoice showing just the net amount (as the previous gross amount).

(i.e. keep the VAT as extra profit)