Commentary

RCB/26/13 VAT—changes to rules for zero-rating supplies of goods for indirect export outside the EU

Part V16 Forms and other HMRC material

RCB/26/13 VAT—changes to rules for zero-rating supplies of goods for indirect export outside the EU

RCB/26/13 VAT—changes to rules for zero-rating supplies of goods for indirect export outside the EU

Revenue & Customs Brief, Issue 26. 6 September 2013

Purpose of this Brief

This Brief provides information on changes to certain rules for zero-rating supplies of goods for export outside the European Union (EU) that take effect from 1 October 2013.

Action to take

To be aware of the changes and how they impact on affected transactions.

Background

In principle, no VAT is due on goods which are exported from the EU (referred to as zero-rating). Strict conditions must be met before sales can be zero-rated and those conditions are laid out in Notice 703 “VAT: Export of goods from the United Kingdom”.

Under EU VAT law (Directive 2006/112, art 146(1)(b)), no VAT is due on indirect exports provided the overseas customer does not have a business establishment in the supplier's country (note: indirect exports occur where goods are collected, or arranged to be collected, by the overseas customer). The UK has implemented this condition into

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