Raising a Sales invoice for a company in Guernsey

Deb117 · ‎May 18, 2022

Hello

I'm looking to raise a sales invoice for a new company based in Guernsey. I'm aware that I do not include VAT but do I need to include an exemption code.

Any help would be extremely helpful.

Thank you.

paul72 · ‎May 18, 2022

Hi @Deb117

Not entirely sure what you mean by an exemption code. You can use VAT Code Z=0% or Exempt for this.

You may need a Commodity Code for each line item (see https://www.gov.uk/trade-tariff) but to/from Channel Islands I don't think will be too much of an issue.

You will need to keep some proof of export - shipping documents or bill of lading - in case HMRC checks up.

For information on VAT on goods exported from the UK, read through VAT Notice 703 : https://www.gov.uk/guidance/vat-on-goods-exported-from-the-uk-notice-703

In particular, section 2.7 Countries that are part of the UK for VAT purposes...

The Channel Islands are not part of the UK for fiscal (VAT) purposes. Supplies of goods sent to the Channel Islands are regarded as exports for VAT purposes and may be zero-rated if the conditions set out in paragraph 3.3 or 3.4 are met. See paragraph 7.12 for information about evidence of export of goods to the Channel Islands.

Hope this helps.

View solution in original post

paul72 · ‎May 18, 2022

Hi @Deb117

Not entirely sure what you mean by an exemption code. You can use VAT Code Z=0% or Exempt for this.

You may need a Commodity Code for each line item (see https://www.gov.uk/trade-tariff) but to/from Channel Islands I don't think will be too much of an issue.

You will need to keep some proof of export - shipping documents or bill of lading - in case HMRC checks up.

For information on VAT on goods exported from the UK, read through VAT Notice 703 : https://www.gov.uk/guidance/vat-on-goods-exported-from-the-uk-notice-703

In particular, section 2.7 Countries that are part of the UK for VAT purposes...

The Channel Islands are not part of the UK for fiscal (VAT) purposes. Supplies of goods sent to the Channel Islands are regarded as exports for VAT purposes and may be zero-rated if the conditions set out in paragraph 3.3 or 3.4 are met. See paragraph 7.12 for information about evidence of export of goods to the Channel Islands.

Hope this helps.

Deb117 · ‎May 18, 2022

Thank you, this is helpful.

We are not shipping any goods, it's a fee for recruitment so I think I'm fine to use the exempt vat code when raising the invoice.

Thanks again.

paul72 · ‎May 19, 2022

If it's for Supply of Services @Deb117 there are different rules depending on whether you’re supplying services to consumers B2C or business B2B.

If it's B2B, I think you're OK to zero rate the VAT but B2C can get complicated.

See VAT Notice 741A ... https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a

Hope this helps.

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Raising a Sales invoice for a company in Guernsey