EVERYTHING YOU NEED TO KNOW ABOUT VAT!

Dec 11, 2023 · Chris McCrea · The Brilliance Collection

EXPORT HORSES SOLD AT AUCTION AND VAT GENERAL POSITION

• Unless otherwise stated, all sport horses sold will be subject to UK VAT at the standard 20% rate.

• VAT will be applied in addition to the winning auction bid (the ‘hammer price’).

OVERSEAS EXPORTS (Excluding Exports to the European Union [EU])

• Where a sport horse is purchased by an Overseas Person or business who removes the animal from the UK within three months of the purchase, the sale will be Zero-rated for UK VAT

1. Proof of overseas residency, such as financial documentation, a tax residency certificate or similar

2. Proof of exportation of the Sport Horse, such as a transportation invoice document or similar. In the absence of both documents, and / or a failure to export the sport horse within the three-month time limit, UK VAT at the full standard rate will be applied to the sale transaction.

EXPORTS TO THE EUROPEAN UNION (EU)

• Where sport horses are exported to the European Union (EU), purchasers should be aware that while the zero rating for UK VAT will apply – providing the qualification criteria listed above have been met – EU VAT and Import Duty may be chargeable at the border at the time of import into the EU.

• It is the responsibility of the purchaser to investigate whether any EU VAT or import duty applies, and to settle any liabilities arising. The company accepts no responsibility in relation to additional VAT or levies charged at the EU border.

SALES ON BEHALF OF A THIRD PARTY

• The company reserves the right to sell sport horses on behalf of a third party, in the business’ capacity as an equine Sales Agent.

• Where the company is acting in this capacity, it will be made clear during the auction as to the identity of the third-party owner, and whether they are registered for UK VAT.

➢ If the third party is registered for UK VAT, UK VAT at the 20% rate will be applicable to the transaction as detailed above, unless the purchaser meets the terms of the exportation exemption.

➢ If the third party is not registered for UK VAT, no VAT will be applicable regards of the situation of the purchaser and whether the animal is subject to subsequent export.