Examples of various export scenarios and VAT treatments: Indirect exports
A UK VAT registered business invoices goods to an overseas customer. A freight forwarder employed by the overseas customer collects the goods from the UK supplier and exports them to a destination outside the EC. See VEXP20300 for a definition of overseas customer.
Diagram of indirect export
This is a straightforward example of an indirect export
- the overseas customer arranges for the collection and delivery of the goods to a destination outside the EC
- there is no connection between the UK supplier and the overseas customer
- The supply may be zero-rated under regulation 129 of the VAT Regulations 1995 provided the conditions in Notice 703 are met.
- similarly, if the overseas customer collects the goods and exports them (e.g. as Merchandise in Baggage) the supply may be zero-rated under regulation 129.