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Where Taxpayers and Advisers Meet

VAT Gibraltar/Norway

dscho555
Posts:4
Joined:Wed Jan 18, 2017 11:17 am
VAT Gibraltar/Norway

Postby dscho555 » Wed Jan 18, 2017 11:23 am

We have an enquiry from a company in Gibraltar wanting us to send goods to their customer in Norway. The company's agent has given us contact details in Germany. Can I zero rate? Do I need a VAT number to check through VIES? Is this an export or an EU dispatch?

I understand Gibraltar is part of the EU, but not part of the customs union, therefore I don't need their VAT number in order to zero rate and can treat this as an export. Similarly Norway is not part of the EU and I don't need a VAT number and can zero rate. The German agent is not relevant for the VAT treatment and the movement of the goods. Am I right?

Any help appreciated

Dave

absolutevat
Posts:38
Joined:Wed Jul 01, 2015 3:28 pm

Re: VAT Gibraltar/Norway

Postby absolutevat » Wed Jan 18, 2017 5:03 pm

Hi Dave

Firstly, I presume that your company (and the goods) are located within the UK? You must then consider whether your sale is a domestic sale in the UK, or if it is a zero rated export to Norway. Does your customer act as the importer of record for the goods into Norway, or is it their customer who clears the goods? This will be the key to both your treatment of the sale, and also their potential Norwegian obligations.

You are correct re: the German agent. As the goods do not travel to Germany, there will be no VAT issues to consider in Germany.

Richard

dscho555
Posts:4
Joined:Wed Jan 18, 2017 11:17 am

Re: VAT Gibraltar/Norway

Postby dscho555 » Wed Jan 18, 2017 5:14 pm

Thanks Richard

Yes, we and the goods are in the UK. Supply is EXW. I understand that the Gibraltar company will organise transport to Norway, probably CPT Norwegian port. Does this make it a sale between UK and Gibraltar?

David

absolutevat
Posts:38
Joined:Wed Jul 01, 2015 3:28 pm

Re: VAT Gibraltar/Norway

Postby absolutevat » Thu Jan 19, 2017 10:04 am

Hi David

Thank you for the clarification. This will not be a sale to Gibraltar as the goods will not go there, you must look at the movement of the goods themselves. If the sale will be EXW and your customer is responsible for the transport, the prudent approach to take would be to charge UK VAT, as you will not have the export documents and would potentially be at risk of an assessment from HMRC if you zero rated the sale.

Do you know if the Gibraltar company will be the importer of record into Norway?

Thanks

Richard

dscho555
Posts:4
Joined:Wed Jan 18, 2017 11:17 am

Re: VAT Gibraltar/Norway

Postby dscho555 » Thu Jan 19, 2017 11:52 am

Thanks RIchard.
Customer has asked us to quote for delivery to Finland. I guess this becomes an EU movement DAP.
Dave

absolutevat
Posts:38
Joined:Wed Jul 01, 2015 3:28 pm

Re: VAT Gibraltar/Norway

Postby absolutevat » Thu Jan 19, 2017 4:14 pm

Dave

Will your customer provide you with an EU(non-UK) VAT number? If so, your delivery from UK-Finland can be made as a VAT free intra-community dispatch.

Lavender2306
Posts:21
Joined:Mon Dec 12, 2016 11:03 pm

Re: VAT Gibraltar/Norway

Postby Lavender2306 » Thu Jan 26, 2017 10:57 pm

Thanks RIchard.
Customer has asked us to quote for delivery to Finland. I guess this becomes an EU movement DAP.
Dave
HI Dave,

This does sounds messy. The query comes from a company in Gibraltar, the goods go to Norway, no, to Finland and
the incoterms used EXW.
EXw normally means indirect export/dispatch and therefore I would be very careful if I were you.
You must make sure that you have evidence of goods leaving UK before you can zero rate the supply.
And make sure you have a valid VAT registration number for the customer in Finland.

dscho555
Posts:4
Joined:Wed Jan 18, 2017 11:17 am

Re: VAT Gibraltar/Norway

Postby dscho555 » Fri Jan 27, 2017 9:52 am

Thanks Richard
It's a new customer who are buying for oil market. They seem to be a buying house/logistics company who are simply reselling. I believe the goods are destined for the North Sea but there are various ways of getting them there and there are various companies involved in the overall project. Without a valid VAT number I can't see how I can treat it as an EU despatch if it goes to an EU country. If it's an out of EU export either EXW or DAP, I'll charge VAT and rebate when I get proof of export/cert of shipment.
Dave


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