Q We are a small haulage firm which X undertakes the

22nd September 1972, Page 217

22nd September 1972

Page 217

Page 217, 22nd September 1972 — Q We are a small haulage firm which X undertakes the

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transport of a certain amount offreight for export. We understand that export goods will be zero-rated when value-added tax is introduced next year. Does this mean that we will not be required to raise any VAT on our export haulage activity and that we will not need to show anything on the invokes we render to our customer.

AThe VAT rating of goods sold for ex

port should not interest you as a haulier. What is relevant is that the proposed rating of the transport of export goods is zero-rated. To qualify, freight must be transported frorr a point in the UK to a point outside the country. Alternatively, the transport must be undertaken on behalf and on the instruction of a company which is not. British and is based overseas.

Transport of export goods to a port within the UK attracts VAT at the standard rate unless done for a foreign company as already stated.

Zero-rating is, however, a taxable heading even though the tax raised is nil. This should be shown on your invoices