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.

The following documents can be used to provide such evidence:

• inter-company correspondence;
• the customer’s order (including customer’s name, French TVA number and delivery address for the goods);
• despatch note;
• commercial transport documents from the carrier responsible for removing the goods from the UK;
• a copy of the of sales invoice (including a description of the goods, an invoice number and the customer’s French TVA number);
• details of insurance or freight charges;
• bank statements as evidence of payment;
• travel tickets, where the business itself is making the delivery;
• receipted copies of the consignment note as evidence of receipt of goods in France; and
• any other documents relevant to the removal of the goods in question which would normally be obtained in the course of exporting to France.

Photocopy certificates of shipment or other transport documents are not normally acceptable as evidence of removal unless authenticated with an original stamp and dated by an authorised official of the issuing office.

There are no rules on how many documents must be kept, but the more evidence that is obtained, the safer the UK business will be from a demand for underpaid VAT. The burden of proof is higher when the French customer arranges for the removal of the goods from the UK.

Any documents used as evidence should show:

• the supplier;
• the customer;
• the consignor (where different from the supplier);
• the goods (needs to include a quantity and a detailed description, and not just ‘various electrical products’);
• an accurate value;
• the mode of transport and route of movement of the goods; and
• the destination.

The proof of export must be kept in a readily accessible format, for 6 years.

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