International Trade - VAT 12 February 2014 Liam Dushynsky

Agenda Selling to overseas customers Holding goods overseas Agency issues

Sending goods to customers in other EC countries Sales to VAT registered customers in other EC countries Obtain customer’s VAT number Check validity of VAT number Show VAT number on invoice including 2 digit country prefix The goods are sent to another EC member state Obtain and retain proof that the goods have been removed within time limits If the above conditions are met the sale is zero-rated known as dispatches

Sending goods to other customers in other EC countries reporting requirements VAT Return – reporting box 6 and 8 EC Sales Lists Intrastats (2013 threshold - £250,000)

EC Trade – other issues Triangular transactions Goods move from A to C Invoicing A to B and B to C Simplification when all parties registered for VAT

Sales of goods to other EC countries Non-VAT registered customers Distance Selling Sales to non-VAT registered customers Distance selling rules could require registration in other EC countries Apply where goods sent from UK to EC country Record distance sales to each Member State Threshold either €35,000 or €100,000 (or own currency equivalent)

Sending goods outside EC Direct exports Zero rated as exports as long as criteria met Goods sent outside EC Proof obtained that goods removed Goods removed within 3 months or 6 months where goods involved in processing or incorporation prior to export Invoice should make country of delivery clear Delivery terms Include in box 6 on VAT return

Goods sent outside EC Indirect exports Customer arranges collection of goods Zero rated as exports as long as criteria met (as for direct exports) Customer belongs overseas Recommend obtain deposit equivalent to VAT Include in box 6 on VAT return

Holding stock overseas VAT registration may be required for sales made in destination country Some countries may have special procedures UK issues

Agency Issues

South Devon Export Network 12 February 2014 Export Events Diary Steve Southcott MIEx International Trade Adviser UK Trade & Investment Tel:

A World Leading Supplier of Propellers and Sterngear

A Complete propeller and stern-gear manufacturer based in Newton Abbot 13

The largest propeller and stern-gear manufacturer in Europe 14

Sales and engineering design department Accounts and credit control department Pattern-making and propeller mould making workshops Bronze and steel foundry for castings Various machine shops Propeller Finishing shop Fabricating and welding shop Inspection & testing laboratory Storage, Packing & despatch department 15 Our Facility Includes

16 What We Do

17 Vessels We Supply

18 How we got here Our History

1974 Started Teignbridge 1975 Persuaded to start a small bronze foundry 1976 Started to supply Marine Projects 1976 Started to supply Birchwood Boats range 1977 Won large order from Perkins Engines and manufactured our first propeller 19 Engineering by Mistake The first years