VAT and the Single Market

Value Added Tax known as VAT is the UK version of sales tax.

Unlike in some other countries, it applies to the sale of goods and services.

The standard rate of VAT is 20%, but there are extensive rules about how VAT operates and some areas such as property and international trade are complex.

The rules are mostly based on legislation, though like any tax in the UK, court cases and tribunal decisions do play their part. Unlike other UK taxes because of the direct impact of sales tax on the value of sales and the resulting interplay across national borders, VAT legislation is heavily influenced by European Directives. The rules that apply to VAT and international trade vary depending on whether the supply is to a business or directly to the consumer. The place of supply being in the domestic market, within the EU, the European Single Market, or elsewher in the world outsidebthe EU has a bearing. There is a very comprehensive notice covering trade within the Single Market. this notice 725 has recently been rerreleased but with only minor changes.  HMRC Reference:Notice 725 (June 2013) - The Single Market

This notice explains the way VAT is charged and accounted for on movements of goods within the EC Single Market and how businesses should account for VAT on goods they buy from other EC Member States.

There are only limited changes from the previous version of the notice as follows;

- VAT registration numbers in other Member States. 

- Introduction of Croatia with effect from 1 July 2013, and

- changes to Ireland.

With the introduction of the Single Market, goods leaving the UK to go to other Member States are no longer called exports, but are referred to as dispatches or removals. The term 'export' is only used for goods leaving the UK to go to countries outside the EC. For information about exports, see HMRC Reference Notice 703 - VAT: Exports of goods from the UK

If you are involved in international trade and you are not sure of the rules, you should discuss your specific situation with an accountant or other VAT expert. 

If  you don't have one,why not try;
Business Orchard