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VEXP80200 | Examples of various export scenarios and VAT treatments: Indirect exports

From HM Revenue & Customs · VAT Export and Removal of Goods from the UK

This is a straightforward example of an (VAT) indirect export

A UK VAT registered business invoices goods to an overseas customer. A freight forwarder employed by the overseas customer collects the goods from the UK supplier and exports them to a destination outside the UK. See VEXP20300 for a definition of overseas customer.

  • the overseas customer arranges for the collection and delivery of the goods to a destination outside the UK

  • there is no connection between the UK supplier and the overseas customer

  • The supply may be zero rated under regulation 129 or regulation 133B of the VAT Regulations 1995 provided the conditions in Notice 703 are met.

  • similarly, if the overseas customer collects the goods and exports them (e.g. as Merchandise in Baggage) the supply may be zero rated under regulation 129 or regulation 133B.