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HMRC internal manual

VAT Export and Removal of Goods from the UK

HM Revenue & Customs
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Examples of various export scenarios and VAT treatments: Examples involving exports to associated companies outside the EC: Direct export to a non-EC branch

In this example

  • A UK company has a non-EC permanently established branch. The parties are part of the same legal entity.
  • A UK supplier delivers the goods to the non-EC permanently established branch and sends the invoice to the UK associated company (or invoices the non-EC branch).

Diagram of directexport to non-EC permanently established branch.

This is an example of a direct export.

The supply may be zero-rated under section 30(6) VAT Act 1994, provided the conditions in Notice 703 are met, because the UK supplier is responsible for the physical export of the goods. This applies equally

  • where the transaction is invoiced to the UK company or
  • where the invoice is sent to the non-EC branch.