This paragraph examines the concepts of 'direct' and 'indirect' exports and the conditions which must be met in order for each to qualify for zero-rating.
Direct exports—meaning and conditions for zero-rating
In Notice 703 HMRC suggests that a direct export occurs when a supplier sends goods to a destination outside the UK and is either responsible for arranging the transport itself or for appointing a freight agent1. Elsewhere HMRC defines a direct export as when the complete transaction from supply to export is under the control of the UK supplier or owner of the goods2.
The conditions attached to the zero-rating of direct exports are as follows3:
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•ÌýÌýÌýÌý HMRC must be satisfied that a person supplying goods has exported them to a place outside the UK (see V4.301)
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•ÌýÌýÌýÌý such conditions (if any) specified in regulations must be fulfilled
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•ÌýÌýÌýÌý such conditions (if any) as HMRC may impose must be fulfilled
No regulations have been made to date. However,
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Web page updated on 17 Mar 2025 13:55