VAT Export and Removal of Goods from the UK

VEXP80100 - Examples of various export scenarios and VAT treatments: Direct exports

A direct export (for VAT purposes) happens when a UK VAT registered business supplies goods and arranges to export them to a destination outside the UK on behalf of their customer.

The following is a straightforward example of a direct export arrangement

• a customer purchases goods from a UK supplier
• the UK supplier exports, or arranges the export, of the goods to a destination outside the UK
• there is no connection between the UK supplier and the customer
• the supply may be zero rated under section 30(6) of VAT Act 1994 provided, the conditions in Notice 703 are met

The customer may be located in the UK, or they may be overseas at the time of purchase. What matters is the supplier is responsible for exporting the goods from the UK to a place outside the UK.