|
Hi there,
I wonder if you could help me in this scenario as I'm going round in circles.
We received a PO from a customer who is a buying agent located in the UK. The PO says c/o Buying Agent and then has the client name & address, which is in the Cayman Islands. The goods were shipped from our UK office to their UK office so they could check them before they were sent to the client. We issued a VAT invoice for the goods as the time which included the shipping to them.
They then shipped the goods on to the end client in the Caymans and have contacted us to arrange a VAT refund as they believe, because they are an agent, that the goods can now be zero-rated. I'm concerned that this is not best practice. From what I've read, for the sale to be zero-rated we would have had to ship the goods ourselves, not to them first.
Can anyone help? I suggested that if we were to do this I would issue a credit note against the original invoice and issue a new zero-rated invoice. They said they just wanted a credit note for the VAT element. It feels a bit fishy so I want to get clarity on this from someone who knows about exports in detail.
Many thanks, Abbie
|
