VEXP80310 - Examples of various export scenarios and VAT treatments: Examples involving exports to associated companies outside the UK: Supplier delivers the goods directly to a non-UK branch of a UK business

In this example of a direct export

• A UK business customer has a non-UK branch.
• A UK supplier delivers the goods to the non-UK branch and sends the invoice to the customers UK office (or invoices the non-UK branch).

The supply may be zero rated under section 30(6) VAT Act 1994, provided the conditions in Notice 703 are met, because the UK supplier is responsible for the physical export of the goods. This applies equally

• whether the UK customer makes taxable supplies from its UK establishment or not
• where the transaction is invoiced to the UK customer or
• where the invoice is sent to the non-UK branch.