VAT on Exports
A supply of goods to a destination outside the UK is an export.
Direct exports: For VAT purposes a direct export occurs when the supplier sends goods to a destination outside the UK. It is the supplier who is responsible for either arranging the transport or appointing a freight agent.
Indirect exports: An indirect export occurs when an overseas customer or their agent collects or arranges for the collection of commercial goods from the supplier within the UK and then takes them outside the UK. This includes goods collected ex-works.
Exported goods, whether direct or indirect exports, are zero-rated in the UK provided certain conditions are met. VAT and customs duties are levied in the country of destination. It is therefore important to agree who is responsible for paying duties and taxes before shipping.
To export goods from Great Britain an EORI number with a GB prefix is required. Goods being moved to or from Northern Ireland may require one which starts with XI.