Export on Ex works basis? 1 January 2020 changes to Proof of Removal requirements
As a part of the EU VAT “Quick Fixes” in addition to VAT changes for intra EU call off stocks and for chain transactions, HMRC have confirmed the UK implementation of an EU agreed “simplification” to proof of removal requirements for zero rated goods sold from the UK to the EU.
The HMRC Guidance on documentary proof for EU sales is attached here
In one respect the clarification of what must be kept within 3 months of supply in order to zero rate sales is welcome. However, please note an important change for any sales that involve your customer or someone acting for them arranging the transport of goods from the UK to EU, including sales on ex works terms. There is now an additional, new requirement for you as supplier to obtain a dated, written statement from your customers within 10 days of the month following the month of supply to include the following information:
- Name and address of customer
- Goods destination
- Confirmation that they have transported the goods or arranged transportation
- Quantity and nature of the goods
- Date and place of arrival of the goods
- Name and title of the individual accepting the goods on behalf of the customer
This change brings an additional compliance task for UK suppliers and should be brought to the attention of relevant customers as soon as possible.
If you are an exporter there are a number of VAT compliance requirements on record keeping where any failure to meet HMRC expectations, will result in the risk of VAT Assessments and Penalties. Therefore, outside of these new requirements export evidence remains an important area to maintain good levels of VAT compliance.
Centurion are here for when VAT gets complicated for you or your business. If you would like a VAT Health check review on your current export record keeping or would benefit from an Inform and Plan session with us to understanding and implementing the January changes for EU sales please do get in touch at firstname.lastname@example.org.