Commentary

704 Retail export scheme

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

704 Retail export scheme

Part V8 HMRC Notices | Commentary

704
Retail export scheme

December 2020

Detail

This notice cancels and replaces Notice 704 (November 2004). This notice applies to supplies made on or after 1 January 2021.

It applies to supplies made by retailers in Northern Ireland to visitors from outside both Northern Ireland and the EU.

Special rules in section 6 apply for goods removed to Great Britain (England, Scotland and Wales).

1 Overview

1.1 Information in this notice

This notice explains when supplies of goods sold by VAT-registered retailers in Northern Ireland to overseas visitors for personal use and exported as accompanied baggage can be zero-rated. In particular, it sets out the conditions that must be complied with by retailers and overseas visitors using the VAT Retail Export Scheme.

Main narrative treatment—V4.305.

1.2 The changes in this notice

This notice has been updated to reflect changes to the VAT treatment of supplies of goods and services following the UK's departure from the European Union and the end of the transition period. The VAT Retail Export Scheme is no longer available in Great Britain.

1.3 Who should read this notice

You should read this notice if you are a VAT registered business in Northern Ireland and you intend to sell goods to visitors from outside Northern Ireland and the EU.

Special rules in section 6 apply for goods removed to Great Britain.

1.4 The law

Article 147 of the Principle VAT Directive requires EU member states to provide for a Retail Export Scheme. The Northern Ireland Protocol means the scheme is available in Northern Ireland too.

Article 131 requires conditions to be made to ensure the correct

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