Exporting goods using the VAT margin scheme
Find out how to account for VAT on margin scheme goods that are exported outside the UK.
There is information you need to know if you’re a business who exports goods under a margin scheme.
The rules you need to follow are different depending on whether you exported the goods before or after 1 May 2023.
Exports before 1 May 2023
The margin on exported goods can be zero-rated. This is based on meeting the normal conditions of export, including holding the required evidence.
For further information about proof of export, read section 6 of Goods exported from the UK (VAT Notice 703).
If you can meet the conditions, then you should insert ‘nil’ in the VAT due column of your stock book.
Exports on or after 1 May 2023
The export zero-rating is withdrawn for goods sold under the margin schemes. VAT should be accounted for on the margin at the appropriate rate for the goods themselves.
You can still export these goods outside of the margin scheme under the normal export rules as set out in Notice 703.
Records to keep
You should keep the normal VAT margin scheme records.
Further information
You must show any goods you buy or sell using a margin scheme on your VAT return.