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HMRC internal manual

VAT Export and Removal of Goods from the UK

From
HM Revenue & Customs
Updated
, see all updates

Particular types of export to destinations outside the EC: Duty free and tax free shops: Treatment of returned goods by retailers operating airside

  • Where the retailer replaces the returned goods with similar goods, which are sent to the customer in a third country the retailer need not account for VAT on the replacement goods provided they are supplied and sent to the customer overseas and the retailer obtains evidence of export within 3 months of the date of supply.
  • Where the retailer replaces the returned goods with similar goods which are sent to the customer in an EC member State there are 2 possible scenarios

 

 

  • The customer is registered for VAT in another member State. The supply may be zero-rated provided the retailer obtains the customer’s EC VAT registration number, including the 2 letter country code prefix, invoices the goods showing the customer’s EC VRN, sends the goods to the destination in the relevant EC member State and within 3 months of the supply obtains and retains evidence of removal from the UK.
  • Where the customer is not registered for VAT in another EC member State the retailer should either account for VAT at the appropriate UK rate as a portion of the amount originally received from the customer or charge and account for VAT on top of the amount originally paid.

 

  • Where the retailer replaces the returned goods with similar goods which are sent to the customer in the UK the retailer should account for VAT at the appropriate UK rate as a portion of the amount originally received from the customer or charge and account for VAT on top of the amount originally paid.