Beta This part of GOV.UK is being rebuilt – find out what this means

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: Exports via associated export companies

Large businesses often set up an associated export company through which exports (and removals to other Member States) are channelled. This arrangement can create a cash flow advantage in situations where the associated company is separately registered for VAT. Companies which are set up solely or principally to create a cash flow advantage can be directed to change their VAT periods (under regulation 25, VAT Regulations 1995). You should report the circumstances of any instances of associated export company arrangements to Anti-Avoidance Group (AAG) 

who will consider each case on its merits and advise whether a direction should be issued to the company.