If you're based outside the UK and would like to purchase garden furniture from a UK retailer, you may be wondering whether UK VAT applies to your order.
The answer depends on where the goods are being exported to and how the delivery is arranged. For customers purchasing furniture for export to destinations such as the Channel Islands, there is a process for recovering the UK VAT once the goods have been successfully exported.
In this guide, we explain how the process works, what documentation you need and what to do if you're arranging your own onward delivery.
Can I buy garden furniture from the UK without paying VAT?
Goods exported from the UK can qualify for zero-rated VAT, provided the relevant conditions are met and the retailer receives satisfactory evidence that the goods have left the UK.
The Channel Islands — including Guernsey and Jersey — are outside the UK VAT area. For VAT purposes, goods delivered there are therefore treated as exports.
However, rather than simply removing VAT from your order at checkout, we will normally charge the VAT initially and reimburse it after delivery, once we have received the required evidence that the goods have left the UK mainland.
This approach allows us to make sure the necessary export requirements have been met before processing the VAT refund.
How does the VAT refund process work?
If you're purchasing garden furniture for export, it's important to contact us before delivery.
We can explain the process and let you know what information and documentation you'll need to provide.
The process is straightforward:
1. Place your order
Your order will initially include UK VAT.
This means that you can proceed with your purchase in the usual way.
2. Arrange delivery and export
Depending on your circumstances, you may either arrange the onward export yourself or use a carrier or freight company to transport the furniture outside the UK.
For example, you may arrange for your furniture to be delivered to a location on the UK mainland before your chosen carrier collects it and transports it to Guernsey or Jersey.
3. Obtain proof that the goods left the UK
Once the furniture has been exported, you will need to obtain official evidence of export from your carrier.
This is important because we need to be able to demonstrate that the goods physically left the UK mainland in order to process the VAT refund.
4. Send us your export documentation
Once you have received your proof of export, send it to us along with your bank details.
We will then process the VAT reimbursement.
What documentation is required?
HMRC requires retailers to retain evidence that goods have been exported when zero-rating an export.
Depending on how your goods are transported, acceptable evidence can include:
- A Certificate of Export issued by your freight forwarder or carrier
- A commercial bill of lading
- An airway bill
- A postal certificate of posting showing the overseas delivery address
- Other appropriate transport documentation demonstrating that the goods have left the UK
- A copy of the sales invoice that clearly corresponds with the goods listed on the shipping documentation
For customers arranging their own export, we recommend speaking to your carrier in advance to make sure they can provide the appropriate export documentation.
When do I need to provide the export evidence?
There is an important time limit to be aware of.
HMRC requires the retailer to obtain valid evidence of export within three months of the date of sale in order to support the zero-rating of the goods.
For this reason, it's important not to leave the export documentation until later. If the required evidence is not received within the relevant timeframe, we may not be able to refund the VAT.
Can HMRC refund the VAT directly to me?
No. HMRC does not refund the VAT directly to the customer in this situation.
The VAT is initially charged by the retailer. Once the retailer has received satisfactory evidence that the goods have been exported, the retailer can process the VAT reimbursement to the customer.
For our customers, we will therefore need:
- Official evidence confirming that the goods have left the UK mainland
- Your bank details so that we can process the VAT refund
What if I'm arranging my own shipping?
This is an important point for customers arranging their own export.
If, for example, you are purchasing a teak bench from us and arranging for it to be delivered to Poole before a freight company transports it to Guernsey, please contact us before delivery.
We can explain what evidence your carrier will need to provide after the goods have left the UK.
Simply arranging for the furniture to be collected or delivered to a UK address does not, by itself, provide us with evidence that the goods have been exported. We need appropriate documentation confirming that the goods physically left the UK.
What about Jersey, Guernsey and other destinations?
The Channel Islands are outside the UK VAT area, so exports to Guernsey and Jersey are treated differently from domestic UK deliveries.
There are also circumstances in which customers purchasing goods for export to other countries may be able to benefit from zero-rated VAT.
However, VAT and export requirements can vary depending on the destination and the way the goods are transported. If you're purchasing furniture from us for delivery outside the UK, we recommend contacting us before placing your order or arranging delivery so we can explain the process applicable to your circumstances.
Planning to export your garden furniture?
If you're purchasing a teak bench, table, chairs or other garden furniture from us for export, please get in touch before delivery.
We'll explain the VAT reimbursement process and what documentation you'll need to obtain from your carrier, helping to make the export process as straightforward as possible.
Please note: VAT treatment depends on the circumstances of each export. The information in this guide is intended as a general explanation of our process and should not be taken as individual VAT or tax advice. For specific tax advice about your circumstances, please consult HMRC or a qualified tax adviser.
For more information please visit our website Cyan.co.uk, call our friendly team on 020 8655 6240 or email us at info@cyan.co.uk
