Commentary

V4.306 Personal exports of motor vehicles and sailaway boats for export

Part V4 Exemption, zero-rating and reduced rates

V4.306 Personal exports of motor vehicles and sailaway boats for export

V4.306 Personal exports of motor vehicles and sailaway boats for export

Personal exports—motor vehicles

The supply of a motor vehicle which is directly exported to a place outside the EU1may be zero-rated under the provisions described in 'Direct exports' at V4.303. However, an indirect export of a motor vehicle may only be zero-rated in the circumstances described below or if it is a supply to an overseas person, or an entitled EU2 resident, and the relevant conditions set out in Notice 703 are fulfilled. It is worth noting that in this context HMRC states that the term 'motor vehicle' includes motor cycles and motor caravans, but does not include pedal cycles and trailer caravans3. For the meaning of indirect export generally see 'Indirect exports' at V4.303.

Regulations4 made under VATA 1994, s 30(8) provide that, on an application being made, HMRC may permit specified persons, within specified periods prior to departure from the UK, to acquire a motor vehicle from a manufacturer without payment of tax for subsequent export. Subject to such conditions as HMRC may impose, the supply is zero-rated5.

Conditions for zero-rating personal exports of motor vehicles

All the following conditions (which are set out in Notice 7076, and have the force of law) must be met. It should be noted that it is not possible to obtain a refund of VAT on a motor vehicle in respect of which VAT was paid on purchase, even if it is later exported and would have qualified under the scheme. The scheme

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