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UK review zero rating of exports

  • Jun 2, 2013 | Richard Asquith

UK review zero rating of exports

The UK is to implement a new treatment on the UK VAT on exports from 1 October 2013.  This will bring it into line with the rest of the European Union.

The change will enable sellers of goods in the UK to non-resident traders who then export the goods from the EU to make the sale at zero VAT.  Whilst the new regime comes into place in October, companies may start to apply it immediately, and also make claims for prior VAT charges if backed up by evidence of an export from the UK.

The change on these indirect exports will bring UK VAT law into line with the EU VAT Directive.  The UK currently insists on UK VAT being charged if the foreign company has a UK non-resident VAT registration.

The UK will consult on the changes with interested parties.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.