Recent changes to the VAT rules on place of supply have opened a very useful little loophole for international trade to British businesses selling internationally.Under the new rules a VAT registered business in the UK which imports goods from another EU country still receives those goods VAT free, but under the new rules if the goods are then exported from the UK, the company pays no VAT under the 'place of supply' rule.
I have not looked into the rules for all the EU member nations but it seems that the UK has decided to take Jersey's fulfilment business and make it its own.
Want to take advantage of this competitive edge, then perhaps the best place to base your operations is the Isle of Man or Ireland...
Which section do you refer to under the Place Of Supply VAT rules? Is this not just for the supply of electronic goods ie electronic data?
ReplyDeleteThe link to the HMRC Notice is found on the second line of the blog post and no this applies to the supply of any good or service.
ReplyDeleteI have looked at the link, couldnt quite see where it mentions about goods in your post. Can you clarify?
ReplyDeleteMy apologies it was the wrong link the place of supply of goods notice can be found here.
Deletehttp://www.hmrc.gov.uk/manuals/vatposgmanual/VATPOSG2100.htm
Link in post now updated.