EU VAT Rules
According to the HMRC (pre Brexit)
We use an online application to validate your EU VAT number with HMRC, we also validate your IP address (to prove you are visiting our site from outside the UK), and your delivery address. If your EU VAT number is validated, then we are able to remove the UK VAT from your order.
We can NOT remove UK VAT from the shipping costs as this is a UK to UK service transaction and so is not part of the export process.
From HMRC for UK VAT registered companies exporting to EU countries
If you sell, supply or transfer goods out of the UK to someone in another country you may need to charge VAT on them. You can zero-rate most supplies exported outside the European Union (EU), or sent to someone who’s registered for VAT in another EU country.
If you sell goods or services to someone in another EU country, who is not VAT-registered, you charge VAT in the normal way.
Sales to another country inside the EU are called ‘dispatches’ or ‘removals’. ‘Exports’ describes sales to a country outside the EU.
Sales to someone who is VAT-registered in another EU country
If you’re sending goods to someone who is VAT-registered in the destination EU country, you can zero rate the supply for VAT purposes, as long as:
- the goods are sent out of the UK to another EU country
- whoever you’re sending them to is VAT-registered in another EU country
- you get their VAT registration number, including the 2 letter country code, and show it on your sales invoice
- you’ve got ‘evidence of removal’ showing that the goods have gone out of the UK
- you dispatch the goods and get evidence of removal within 3 months
To account for the VAT on zero-rated sales to another EU country, include the value of the goods and services in your VAT Return.
Your ‘evidence of removal’ will include a number of things like:
- customer orders
- correspondence with customers
- sales invoices
- packing lists
- invoices from hauliers
- bank statements
- consignment notes showing the goods have been received in another EU country
It must also show:
- your business details
- your customer’s details
- a detailed description of the goods and their value
- the method of transport and route
- where the goods are going to