VAT and France

The export of goods from the UK to France can often be zero-rated for UK VAT purposes, but one of the conditions is that the UK business keeps evidence that the goods have been removed from the UK. It is therefore important to ensure that sufficient evidence is obtained and kept, in order to avoid having to charge or pay UK VAT on a sale.

This can be particularly difficult when it is the customer who arranges the delivery, as all the documentation will be between them and the courier. The burden of proof is therefore higher than where the UK business arranges the despatch.

As it is the UK business that will be liable to pay any UK VAT that should have been charged, in these cases it is common for the UK business to ask the French customer to pay a deposit equal to the UK VAT that would have to be paid if sufficient evidence of the removal of the goods cannot be produced. This deposit can be returned once sufficient evidence is received from the French customer, which could be immediately or within the usual time limit for removal from the UK of 3 months (or 6 months if the goods are receiving another service in the UK before their removal).

For evidence of removal, copies of transport documents alone will not be sufficient. It is recommended that the evidence includes:

• Written order from the customer which shows their name, French address and French TVA number and the address where the goods are to be delivered.
• Copy sales invoice showing the customer’s name, French TVA number, a description of the goods and an invoice number.
• Date of departure of goods from the UK business premises and from the UK.
• Name and address of the haulier collecting the goods.
• Registration number of the vehicle collecting the goods and the name and signature of the driver and, where the goods are to be taken out of the UK by a different haulier or vehicle, the name and address of that haulier, that vehicle registration number and a signature for the goods.
• Route, for example, Channel Tunnel, port of exit.
• Copy of travel tickets.
• Name of ferry or shipping company and date of sailing or airway number and airport.
• Trailer number (if applicable).
• Full container number (if applicable).
• Name and address for consolidation, groupage, or processing (if applicable).

As with other exports, the evidence must be kept in a readily accessible format, for 6 years.

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