VAT—exporting goods
Produced in partnership with John Fuszard of Sagars Accountants Ltd

The following Tax practice note produced in partnership with John Fuszard of Sagars Accountants Ltd provides comprehensive and up to date legal information covering:

  • VAT—exporting goods
  • Position from 1 January 2021
  • Direct and indirect exports
  • Direct exports
  • Indirect exports
  • Conditions for zero-rating
  • Zero-rating condition—proof of export
  • Proof of export for indirect exports
  • Zero-rating condition—time limits
  • Time of supply for exported goods
  • More...

VAT—exporting goods

Coronavirus (COVID-19): In May 2020, HMRC announced it recognised that some intended exports of goods may have been delayed because of the coronavirus pandemic. As a result, HMRC said it will use its discretion to temporarily waive the prescribed time limits for an export being eligible for zero-rating. This will be done on a case by case basis in circumstances where the goods have not left the UK due to the coronavirus crisis. The goods must, however, have either already been exported or will be as soon as is reasonably practicable after the date a customer is notified that HMRC is temporarily waiving the tax.

For VAT purposes, from 1 January 2021, an export means a supply of goods from Great Britain (GB) to a destination outside of the UK, or from Northern Ireland (NI) to a non-EU country outside of the UK. There are two types of exports: direct and indirect. For VAT purposes, a direct export is where the goods are removed under the control of or on behalf of the supplier, whereas an indirect export is where the goods are removed under the control of or on behalf of someone other than the supplier, usually by the overseas customer. Note that the definitions of direct and indirect exports differ for customs purposes (where a direct export is where goods leave the

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