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HMRC internal manual

VAT Export and Removal of Goods from the UK

HM Revenue & Customs
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Assessments, adjustments and demands for tax: Calculation of an export or removal assessment

It is important to remember that if an assessment is notified on a supply previously zero-rated as an export or removal, the amount of the adjustment must be calculated by applying the VAT fraction in force at the time of supply to the value of the supply, ie for a VAT rate of 17.5% the VAT element would be calculated at 7/47ths.

Assessments raised for non-compliance with the conditions for zero-rating are notified using input form VAT 641 coded 06 for exports or 24 for removals.

Supplementary invoices

You should advise the trader that if amended or supplementary invoices are subsequently issued, they must account for the difference between the VAT fraction and the revised amount of VAT on their VAT return.

Buying and selling commission

If supplies previously described as zero-rated become liable to UK VAT, any linked supplies of buying or selling commissions charged by agents will also become taxable. Take appropriate steps to ensure that the tax due on these supplies is brought to account and the VAT registration position of the agent is confirmed.