vat on dies on Export
This query is : Resolved
05 September 2009
We are manufacture & exporter in casting. We were having some export order for that we were manufactured dies as per their specification. We were received payment from exporter for that dies, but dies are retain with us for production. what is the vat rate applicable on dies? its treat as export sale or local sale? please advice........
09 September 2009
The question arises is whether the ownership of the dies has ever been transferred to the client? if not, I don't think that VAT will be applicable in this case.
11 September 2009
WE shown Export sale in our books of account and adjust the amount received from exporter but dies physically was not gone........
11 September 2009
WE shown Export sale in our books of account and adjust the amount received from exporter but dies physically was not gone........
02 August 2025
Regarding VAT on dies made for export but retained with you, here’s the clarification:
* **Export sale for VAT purposes generally requires physical movement of goods outside the state or country.** Since the dies remain with you and are not physically shipped out, this is **not considered an export sale** under VAT.
* If the **ownership of the dies has been transferred** to the exporter (payment received and contractual transfer), then it is treated as a **local sale** for VAT, and VAT is applicable at the applicable local rate.
* If ownership has **not been transferred**, then there may be no VAT liability on the dies.
* Simply showing the transaction as export sale in books without physical export and transfer of possession does not qualify it as an export sale for VAT.
**Summary:** Since dies are retained and not physically exported, VAT on dies is applicable as local sale at the standard VAT rate of your state. You cannot treat it as export sale for VAT purposes.
* **Export sale for VAT purposes generally requires physical movement of goods outside the state or country.** Since the dies remain with you and are not physically shipped out, this is **not considered an export sale** under VAT.
* If the **ownership of the dies has been transferred** to the exporter (payment received and contractual transfer), then it is treated as a **local sale** for VAT, and VAT is applicable at the applicable local rate.
* If ownership has **not been transferred**, then there may be no VAT liability on the dies.
* Simply showing the transaction as export sale in books without physical export and transfer of possession does not qualify it as an export sale for VAT.
**Summary:** Since dies are retained and not physically exported, VAT on dies is applicable as local sale at the standard VAT rate of your state. You cannot treat it as export sale for VAT purposes.
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