Tax Guide, Artisan Furniture, UK
1. Overview of VAT in the United Kingdom
The United Kingdom operates under a unified Value Added Tax (VAT) system, regulated by HM Revenue & Customs (HMRC). The current standard VAT rate is 20%. As a British company based in Westminster, London, Artisan Furniture is legally obligated to charge VAT on all qualifying domestic transactions. All prices displayed on the website are exclusive of VAT (Ex VAT). The VAT amount is automatically added during the final checkout stage for applicable orders.
2. VAT Chargeability on UK Transactions
VAT at 20% is charged on all transactions where the goods are sold and remain within the UK. This includes orders placed by UK-based businesses or individuals, orders placed by overseas customers when goods are delivered to a UK address, and orders where the final delivery location is within England, Scotland, Wales, or Northern Ireland.
Illustrative Example: If a customer based in France places an order but requests delivery to a UK warehouse, VAT will be applied since the goods remain within the UK.
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3. Non-Application of VAT on Exports
VAT is not charged in the following circumstances: when goods are exported directly from the UK to countries outside the United Kingdom such as the Philippines, Canada, or Australia; and when goods are shipped to a non-UK delivery address at the point of sale and supporting export documentation is in place. In such transactions, zero-rating applies, provided the conditions laid down by HMRC are strictly met.
4. Revised EU Export Policy – Effective Summer 2025
Although VAT would not typically be charged on direct exports to the European Union, as a matter of business policy, all direct exports from the UK to the EU have been formally ceased and terminated effective Summer 2025. This decision has been taken in view of customs clearance complexities, duty-related delays, and associated regulatory frictions post-Brexit. All European Union orders are now serviced exclusively through:
- Our Magdeburg fulfilment centre in Germany
- Our proposed Madrid fulfilment centre in Spain
5. VAT Invoices and Record-Keeping
All UK domestic transactions are accompanied by a formal VAT invoice. Each invoice includes the company’s UK VAT registration number, a clear breakdown of the net amount, VAT amount, and total gross amount, and details of the delivery address and shipping destination. For exports outside the UK, documentary evidence of shipment is required to support zero-rating. This includes, but is not limited to, commercial invoices, airway bills, bills of lading, and official export records. Proof of export is mandatory to maintain compliance with HMRC.
6. Resellers and VAT Reclaim
The UK does not operate a resale tax exemption certificate system as found in the United States. All UK domestic transactions are subject to VAT at the point of sale. VAT-registered businesses may reclaim the VAT paid through their periodic VAT returns filed with HMRC. Non-VAT-registered entities are not entitled to reclaim VAT and will incur VAT as part of their total cost.
7. Exports and Zero-Rating Compliance
Where goods are shipped from the UK to non-EU overseas destinations, zero-rating is applicable strictly under HMRC rules. Proof of export must be retained and verifiable. VAT will remain chargeable if adequate proof of export is not provided. The responsibility to ensure proper documentation rests with the seller. There is no fixed time allowance such as three months; export zero-rating is strictly contingent on satisfactory evidence of shipment and compliance with HMRC standards.
8. Summary Table of VAT Treatment
| Scenario | Customer Location | Delivery Location | VAT Charged | Policy Notes |
|---|---|---|---|---|
| UK Company / Individual | UK | UK | ✅ 20% VAT | Standard domestic transaction |
| Overseas Company | UK | UK | ✅ 20% VAT | Product remains in the UK |
| UK or Overseas | EU | EU | ❌ No UK VAT | Export to EU ceased – supplied from German or Spanish fulfilment centre |
| UK or Overseas | Non-EU (e.g., Philippines, USA) | Non-EU | ❌ No UK VAT | Zero-rated export subject to proof of export |
9. Legal Disclaimer
Important Notice:
This document is provided strictly for general informational and reference purposes only. It does not constitute, and should not be construed as, legal, tax, accounting, or professional advice of any kind.
Global Vision Direct Ltd t/a Artisan Furniture has made reasonable efforts to ensure that the information contained herein is accurate and current as of the date of publication. However, no representation, warranty, or guarantee (express or implied) is made regarding the accuracy, completeness, or continuing validity of any information.
All VAT rules, customs procedures, and export regulations are subject to change by HM Revenue & Customs (HMRC) and other competent authorities. Obligations may vary depending on individual circumstances, jurisdictional considerations, and transactional structures.
The company expressly disclaims all liability, responsibility, and legal obligation arising from or connected to the use of, or reliance upon, this document, including (without limitation) any direct, indirect, consequential, incidental, punitive, or special damages.
All parties engaging in UK or international trade are strongly advised to seek independent legal and tax counsel and to verify their obligations directly with the relevant regulatory authorities. This document does not create or imply any contractual rights, legal obligations, or warranties of any nature between the company and any third party.
Published January 2026 | Effective from January 2026 until Superseded or Amended