VEXP50800 - Particular types of export to destinations outside the EU: exports of freight containers

The rules for the export of freight containers themselves follows the same principles as for general exports of goods. See Notice 703/1 for further information. The cross-border movement of containers engaged in international trade (e.g. carrying imported or exported goods) does not normally give rise to VAT liability. Containers that enter the UK carrying goods are subject to Temporary Admission rules. Check if you can get import duty relief on goods using Temporary Admission.

A Freight container is defined by Regulation 117(2)

117(2) For the purposes of regulation 128 “container” means an article of transport equipment (lift-van, moveable tank or other similar structure)–

(a) fully or partially enclosed to constitute a compartment intended for containing goods,

(b) of a permanent character and accordingly strong enough to be suitable for repeated use,

(c) specially designed to facilitate the carriage of goods, by one or more modes of transport, without intermediate reloading,

(d) designed for ready handling, particularly when being transferred from one mode of transport to another,

(e) designed to be easy to fill and to empty, and

(f) having an internal volume of one cubic metre or more,

and the term “container” shall include the accessories and equipment of the container, appropriate for the type concerned, provided that such accessories and equipment are carried with the container, but shall not include vehicles, accessories or spare parts of vehicles, or packaging.

Regulation 128 providing for the zero-rated export from Great Britain.

Where the Commissioners are satisfied that a container is to be exported to a place outside Great Britain, its supply, subject to such conditions as they may impose, shall be zero-rated.

And Regulation 133H providing from the zero-rated export from Northern Ireland.

133H(1) The Commissioners may make additional provision in relation to importation, exportation and removals so far as concerning value added tax in respect of Northern Ireland in a notice published by them.

(2) A notice made under this regulation may include provision for the following—

(a) enactments, regulations and Union customs legislation which are to be excepted or adapted in relation to importations in, or exports from, Northern Ireland;

(b) treatment of supplies made to persons taxable in a member State or supplies of goods subject to excise duty to persons who are not taxable in a member State;

(c) reimportation of goods exported for treatment or process, temporary importations and export of freight containers;

(d) territories to be treated as excluded from or included in the territory of the Community and of the member States, related entry and exit formalities and use of the internal transit procedure under Union customs legislation and Union customs legislation which will apply.

Regulation 133A(2) ensures uses the same definition of container for Northern Ireland.

133A(2) In this Part—

“container” has the same meaning as in Part 16;