We are a registered United States 501c3 charity that sends on consignment certain goods (CDs and Vinyl records) to a UK distributor who then sells them to retailers and stores. The proceeds we receive from this distributor are tax free income to us in the USA and support our taxable activities. Do we qualify for an exemption of VAT tax in this case?
gklabin, please see this link https://www.gov.uk/goods-sent-from-abroad/tax-and-duty. Generally the customers are responsible for paying duty and VAT depending on the value of the goods – the duty and VAT is chargeable based on the values as shown the link.