If I buy something from the USA, what goes down in the VAT classification? Z or E?
VAT classifciation on USA purchases - Z or E
Dec 27, 2004
12 Replies
neither, you should be accounting for VAT on the import using the "reverse charge procedure".
Phil
Oops! Sorry, I meant if I sell something to the USA. Any difference?
classification? Z
The exports would be Zero rated, assuming the qualifying conditions are met.
"beyond the scope of VAT" I believe is the correct definition. These are goods, yes ?
Phil
If they are goods. Apparently [VAT 700] some exported services are standard-rated, though. I can't find a proper piece of guidance on this, so if it's relevant you'd better pursue it, here or elsewhere.
Matti
VAT 703
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"Exports and removals of goods from the United Kingdom" "1.5 General principles The supply of goods for export from the EC or removal to another EC Member State may be zero-rated"
Phil
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> "Exports and removals of goods from the United Kingdom" >
Yes, but it was the guidance on the export of SERVICES I was talking about.
Matti
sorry it was intended for the OP, there's a services guide 741 at
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Phil
Well, some are goods (ebooks) but most are services.
is an ebook a good or a service :-) "It is important to remember that digitised products are regarded as services."
there's been a recent raft of stuff for electronically delivered things, if you lok at hmce.gov.uk on the VAT tab, go to the FAQs and there is one on Internet Trading
the links are awful but might work
Phil
That's not right. Try getting to grips with the basic principles of VAT in The VAT Guide at
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it is for some services, delivered in the USA.
Phil
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