Sheep farmers selling wool urged to be careful of hidden VAT
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28th May 2013
As the sheep shearing
season commences, NFU Cymru has urged farmers to be cautious when
outside the British Wool Marketing Board scheme, as there could be a
When selling wool the livestock owner may well be liable to
an unexpected VAT charge if the wool does not leave the UK within
time limits. The wool is still eligible
to be zero-rated for VAT purposes as long as it leaves the UK within
of the sale, but it is important that the farmer retains the correct
documentation and actually know if the wool has been exported. If not
VAT is due on the sale.
Rob McCann, a director of The VAT People, said “By ensuring
they play within the rules laid down by HMRC, farmers can protect
from the potential for fines and interest payments if HMRC were later
discover the wool hadn’t been exported.”
“Some simple steps like taking the customers VAT number and
the full delivery address and quoting both of these on the invoice can
ensure that any investigation is not too time consuming or frustrating.
Any correspondence showing that the goods
have left the UK within three months is hugely important in defending
If you have clients for whom this may be an issue, either
this year or who have potentially unresolved issues from prior years,
give us a
for a free initial consultation. A pre-review
inspections to help ease any problems that may exist for clients.
About the Author
VAT People are leading VAT and Customs Duty
consultants based in the
North West of England. We work with a wide range of businesses
throughout the UK as well as assisting our accountancy colleagues to
unravel the thorny VAT issues for their clients. We are one of the UK's
largest and most comprehensive sources of VAT and Customs advice, our
consultancy team having over 140
years of experience in VAT and Customs
gained in either HMRC or a Big 4 accountancy practice environment.
Call us on our VAT helpline 0800 077 4604 to discuss. All initial discussions are free with no-obligation.
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Article Published/Sorted/Amended on Scopulus 2013-06-07 09:10:14 in Tax Articles