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HMRC internal manual

VAT Export and Removal of Goods from the UK

Introduction: VAT law on exports and removals: EU law

Council VAT Directive 2006/112/EC – known as the Principal VAT Directive

The Principal VAT Directive 2006/112 replaced the EU Sixth Directive 77/388 with effect from 1 January 2007. The new Directive does not change EU or UK VAT law.

 

 

 

 

 

Article 131 states that member States shall lay down conditions that apply to exemptions (zero rating in the UK) to ensure the straightforward application of the exemptions and to prevent evasion, avoidance or abuse.

Article 146(1)(a) provides the legal basis for the zero rating of goods exported by or on behalf of the vendor.

Article 146(1)(b) provides the legal basis for the zero rating of goods exported by or on behalf of a purchaser not established in the supplier’s country.

Article 148 (a) and (b) provide the legal basis for the zero rating of goods supplied for use as ships stores.

Article 148(e) provides the legal basis for the zero rating of goods supplied for use on board aircraft on international routes.

Article 138(1) provides the legal basis for the zero rating of goods supplied for removal from the UK to a VAT registered customer in another member State.