Particular types of export to destinations outside the EU: 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 Counter-Avoidance Anti-Avoidance Group (AAG)
who will consider each case on its merits and advise whether a direction should be issued to the company.