VAT/Customs question for sale to Guernsey customer
Hi,
There are various iterations of this question already but I still can’t seem to figure out what I need to do.
So I have a sale from a buyer in Guernsey. I am VAT registered in the UK. The sale is for a high value item at £1350.00
My question is - how do I ensure the buyer is not charged VAT in Guernsey? I have read about the sale needing to be zero-rated…is this a matter for my own records or do I need to declare the sale to be zero-rated somewhere as I don’t see an option on the customs form?
Thank you.
Seller_qZO3ZCjoBXEeL
In my experience CI buyers are fully aware of the importation costs buying from the mainland as they do so much of it. They are mostly frustrated when sellers don’t remove the VAT from the obviously VAT inclusive price they were charged as they have to pay their own import VAT again on the whole amount.
No, no need, just state your amounts as they are. VAT is inapplicable to the transaction.
11 replies
Seller_qZO3ZCjoBXEeL
Hi,
Sales from the UK to Guernsey are VAT zero rated. As such your own invoice should show zero VAT and the commercial invoices you raise to send with the customs documents with the shipment are reflective of the price of the goods sold without VAT.
Guernsey customs will take care of charging their own VAT as applicable on the goods when they arrive to the recipient.
Obviously you need to ensure your records show the goods were exported from the mainland and zero rated. You are required to keep evidence of this (manifest/duplicate invoices and shipping declaration) for at least 7 years.
Seller_qZO3ZCjoBXEeL
We are not signed up to VCS and in every order I’ve had to the CI, VAT inclusive prices have been charged and I’ve manually refunded the VAT portion. I’ve not had a CI order since the Brexit changes so don’t know if anything has changed in that regard.
Seller_Wqg5EgqxuOwDD
On the VCS it automatically excluded the VAT so that the buyer wasn’t charged it in the 1st place. I’ve only had one since Brexit and it broke down the base cost plus the vat but the buyer was charged the total price which obviously included the vat. Really doesn’t make sense.
Seller_qZO3ZCjoBXEeL
They’ve (Amazon) obviously borked it with whatever fudge they made on 27th January for EU VAT calculations/pricing.
Seller_Wqg5EgqxuOwDD
That the technical term 
Pretty much spot on I’d say.
Seller_RLXCX068q9bgP
I must use that today.
past tense: borked ; past participle: borked
- obstruct (someone, especially a candidate for public office) by systematically defaming or vilifying them.
“‘We’re going to bork him’, said an opponent”
Seller_BLM42yJUbBE9O
Thanks for this response. So I take it from your reply that my buyer is going to be charged VAT regardless? Would it be better to contact the buyer and check that they are ok with this since this is a high value item?
The commercial invoice template which has been provided by the carrier (TNT) does not mention VAT - should I just add a note to the invoice saying “This is a zero-rated VAT Sale”?
Thanks again.
Seller_qZO3ZCjoBXEeL
In my experience CI buyers are fully aware of the importation costs buying from the mainland as they do so much of it. They are mostly frustrated when sellers don’t remove the VAT from the obviously VAT inclusive price they were charged as they have to pay their own import VAT again on the whole amount.
No, no need, just state your amounts as they are. VAT is inapplicable to the transaction.
Seller_BLM42yJUbBE9O
Ok thanks very much @PeterB. Hopefully this thread will help others in the same situation as well.
Seller_MT8rt0A2OpbCx
Would the price to a UK resident be £1350, i.e. £1125 + £225 VAT, or £1620, i.e. £1350 + £270 VAT. Has Amazon had deducted the VAT because it is going to CI?
Its been a long time since I have had a CI order. At the time (as far as I can remember) the customer was charged the same as a UK resident and later requested a refund for the VAT value, as they were charged CI VAT on arrival. Things might have changed since, even though Brexit shouldn’t affect CI.
