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HMRC internal manual

VAT Margin Schemes

Second-hand vehicles: Indirect exports

Traders may zero-rate supplies of second-hand motor cars as indirect exports under Regulation 129. If a vehicle is supplied to an overseas person for export to a destination outside the EC, the supply may be zero rated, provided the conditions laid down in Notice 703 VAT: Exports and removals of goods from the United Kingdom are met. 

Traders may also zero-rate second-hand motor vehicles supplied to overseas visitors and entitled EC residents for export from the EC under Regulations 132 and 133 of the VAT Regulations 1995. The supply may be zero-rated provided the conditions set out in Notice 707 VAT Personal Export Scheme are met.