VAT zero-rating of exports from the UK
From 1 October 2013 there will be changes to the VAT zero-rating of export rules where goods are supplied to UK VAT registered customers established in countries other than the UK.
The UK currently provides for zero-rating of goods intended to be exported outside the European Union. The changes will extend zero-rating to goods supplied to businesses registered for VAT in the UK but established in another country where the goods are exported outside the EU.
This change will bring UK law in line with EU law and will assist export trade by removing a requirement for UK businesses and their customers to account for VAT. The changes only relate to the zero-rating rules for an indirect export (i.e. when goods are exported under the control of the overseas customer).
A separate legislative change will also be made to amend an outdated reference to excise law in respect of zero-rating of excise goods to persons not taxable in another member state.