VEXP20100 - Basic principles: Introduction

This section explains the basic conditions for zero rating supplies of goods

• for export from the UK or
• for removals of goods from Northern Ireland to customers registered for VAT in an EU Member State.

It is essential that only genuine exports and removals are zero rated to prevent losses of VAT revenue and abusers of the system gaining an unfair advantage over their competitors.

Revenue implications of zero-rating exports and removals

Every year over £500 billion of goods are zero rated as exports and removals. This is a significant movement of what are generally standard-rated goods, and the scope for error and fraud is wide ranging. It is this potential for incorrect zero rating that explains the need for detailed rules on evidence for export or removal. Our approach must be to help business comply and avoid errors, but to be alert to the possibility of diversion and fraud.