Vat/Export? Help please

Hello all, I've been viewing the forums for a long time but never had any posts before, always been helpful to find answers and help on this forum.

I'm after some help/information and possibly a point in the right direction.

I'm starting up a business in which I export supplements (the whole range from protein/creatine/pre-wo/amino acid etc etc).

I've managed to track down a few wholesale suppliers (of which not many made it easy to get a price list!)

I've even got the shipping sorted in some cases.

My problem is VAT on EXPORT goods. Now I'm currently looking to ship the goods to a NON-EU (no vat) country and therefore need Zero-rate-vat prices. However some companies clearly state "NO VAT" while others "VAT INCLUDED". what's the case with supplements and VAT. is it the standard 20%?

Search/google hasn't helped me much so if anyone can give me any advise or share any similar experiences I would be extremely grateful.

Thanks in advance for your time and help. Looking forward to reading your replies.

- Kal

If you start a UK based/registered company and you buy from other UK based companies they will charge you VAT. I assume if you then export out of the EU you could claim the VAT back..
 
Most supplements are 20% VAT rated, but some of the powders are VAT free.. The companies you buy from should have this stated on their price list.

Where do you plan to ship to? Because you also need to ensure that the products are legal in the coutries you export to..

Rob thanks for such a quick reply.

Ive gotten two different price lists and awaiting another 4.

The price lists don't mention vat but once I ask them (via email) one has said
- "our supplements are VAT free, we don't charge VAT" whereas the other has said
-"this price is without VAT" (so I assume he would add VAT if he did deliver to an EU country)

The country currently in question is a turkey (non-eu) the products are not illegal as they currently sell them.

If it helps avoid claiming back VAT and directly receive the zero-rate VAT - I can use either UK based company to buy or a TURKISH company as I have contacts there.

My understanding of VAT is that any item manufactured and then subsquently sold in the UK will have VAT included. This may not be initially included in the 'cost price' of the item but upon paying for the item VAT will be included.
 
If the item is imported into the UK, unless the importer has a special set-up with UK customs (bonded warehouse) then VAT will have been paid upon arrival into the UK.
 
As from what you are saying, you are not the manufacturer of the supplements you are wishing to sell then all your supplements will at some point have VAT included.
 
The only exception to this is if you import from outside the EU, then wish to sell the supplements to countries outside the EU. This is where the 'bonded warehouse' comes into effect. This allows a company to import into this theoretical 'bonded warehouse' not pay VAT on the shipment before selling and subsequently exporting the items, thus avoiding paying the VAT. However any of these imported supplements that remain in the UK will have to have VAT paid on them. . can get tricky proving to HMRC which items stayed / left the country to avoid fraud.
 
Hope the above helps

Andy26


My understanding of VAT is that any item manufactured and then subsquently sold in the UK will have VAT included. This may not be initially included in the 'cost price' of the item but upon paying for the item VAT will be included.

Not if its classified as a 'food product' - which will cover some (but not all) supplements

When you start trading mate make sure that you have terms regarding VAT included on the invoice so there is no confusion and the other party cannot try and pull a fast one if there is room for a fast one to be pulled on the transaction.
 
Also if your selling overseas and invoices are sent by email and thus can be altered at the other end get an email from them which states they understand the full terms of sale and VAT requirements.