Q: Please provide
me with an interpretation note dealing exporting goods so I can insist a
supplier charges VAT.
A client of mine (A) is exporting goods to an overseas (B).
My client’s supplier (C) is shipping directly to their client (B) on my clients
behalf (A), but billing my client (A).
I need to prove to the local supplier (C) that they have to
charge VAT, yet the VAT handbook is unclear. I maintain that the supplier(C)
has to charge my client (A) VAT. They refuse to do so as they say the goods are
exported. I believe it is correct that my client (A) does not charge the
foreign company vat (B), yet the local company (C) shipping on my client’s
behalf should charge VAT.
A: Please refer
to Interpretation Notes 30 and 31.
Disclaimer: Nothing in this query and answer should be construed as
constituting tax advice or a tax opinion. An expert should be consulted for
advice based on the facts and circumstances of each transaction/case. Even
though great care has been taken to ensure the accuracy of the answer, SAIT do
not accept any responsibility for consequences of decisions taken based on this
query and answer. It remains your own responsibility to consult the relevant
primary resources when taking a decision.
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