Commentary

V4.301 Zero-rating of exports and goods supplied as stores, conditions and failure to meet conditions

Part V4 Exemption, zero-rating and reduced rates

V4.301 Zero-rating of exports and goods supplied as stores, conditions and failure to meet conditions

Exports

V4.301 Zero-rating of exports and goods supplied as stores, conditions and failure to meet conditions

Following the UK's departure from the European Union on 31 January 2020 and the ending of the Brexit implementation period on 31 December 2020, EU member states have become 'third countries' with respect to the UK, with the result that movements of goods to an EU member state from Great Britain (there are different rules for Northern Ireland, which remains subject to EU rules (see V3.360) have become 'exports' (rather than 'dispatches' as previously). They are therefore treated in the same way as movements to any other country, except:

  1.  

    •     during an interim period from 1 January 2021 to 31 July 2021, when certain administrative simplifications are in place (see Border Operating Model part 4.1)

  2.  

    •     in respect of goods leaving Northern Ireland for an EU member state, where special arrangements apply arising from the application of the Northern Ireland Protocol, which forms part of the European Union (Withdrawal Agreement) Act 2020

This section and V4.302–V4.307 consider the zero-rating for goods which are to be treated as supplied in the UK under the place of supply rules outlined in V3.170–V3.178 but which qualify for relief as exports or goods supplied as stores.

Scope of zero-rating

The UK provisions in respect of exports are contained in VATA 1994, s 30(5)–(9) and regulations made thereunder. They provide for the zero-rating of:

  1.  

    •     the supply1 of goods exported by the supplier

  2.  

    •     the supply of goods where the

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