VEXP80330 - Examples of various export scenarios and VAT treatments: Examples involving exports to associated companies outside the UK: non-established taxable person (NETP) has goods delivered to an overseas address.

In this example

• a non-UK business customer is VAT registered in the UK as a NETP
• a UK supplier sells goods for export to the non-UK business
• the goods are sent out of the UK to the non-UK business

If the UK supplier arranges for the physical export of the goods, this is a direct export. The supply may be zero rated under section 30(6) VAT Act 1994, provided the conditions in Notice 703 are met.

If the non-UK company arranges for the goods to be exported this is an indirect export. The supply can be zero rated if the non-EU company has a UK VAT registration number (taxable person in the UK and

• it has no business establishment in the UK from which it makes taxable supplies
• the conditions set out in regulation 129 and regulation 133B of VAT Regulations 1995 can, therefore, be met.

This applies equally

• Whether the non-UK company makes taxable supplies in the UK or not.
• whether the goods are shipped by the supplier or collected by the customer or their agent.