VAT on Exports

Key facts

Exports of goods are zero-rated (0% VAT).
You must hold proof of export to support zero-rating.
You can reclaim input VAT on purchases related to your exports.
Services exported to non-UK businesses may also be outside the scope of UK VAT.

Exporting Goods

When you sell goods to customers outside the UK, the supply is zero-rated for VAT purposes. You charge 0% VAT on the invoice.^[1]

Proof of Export

To zero-rate an export, you must hold evidence that the goods left the UK:^[2]

Official customs evidence (export declaration)
Commercial evidence (shipping documents, bills of lading, airway bills)
Supplementary evidence (customer orders, correspondence, payment records)

You need official evidence plus one other form of evidence. Keep all records for 6 years.

Exporting Services

Services supplied to business customers (B2B) outside the UK are generally outside the scope of UK VAT under the place of supply rules. The customer accounts for VAT in their own country.^[3]

Regular Refunds

If you mainly export, you’ll regularly claim VAT refunds — you charge 0% on sales but reclaim VAT on UK purchases. Consider filing monthly VAT Returns to get refunds more frequently.

Tip: If you don’t hold adequate proof of export, you must charge UK VAT at the standard rate. Always get your export documentation in order before invoicing at 0%.

Frequently Asked Questions

Do I charge VAT on exports from the UK?

No. Exports of goods from the UK are zero-rated for VAT purposes, meaning you charge 0% VAT. However, you must hold proof of export to support the zero-rating.

What proof of export do I need for zero-rating?

You need official customs evidence (export declaration) plus at least one other form of evidence such as shipping documents, bills of lading, or airway bills. Keep all records for 6 years.

Can I reclaim VAT on purchases related to exports?

Yes. Because exports are zero-rated (not exempt), you can reclaim all input VAT on purchases used to make those exports. Exporters often receive regular VAT refunds from HMRC.

Is UK VAT charged on services provided to overseas businesses?

Generally no. Services supplied to business customers outside the UK are usually outside the scope of UK VAT under the B2B place of supply rules. The customer accounts for VAT in their own country.

Sources

VAT on goods exported from the UK — GOV.UK
Zero-rating goods exported from the UK — GOV.UK
Proof of export — GOV.UK