VEXP80200 - 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 UK. 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 UK
• there is no connection between the UK supplier and the overseas customer
• The supply may be zero rated under regulation 129 or regulation 133B 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 or regulation 133B.