Zero rating of goods to be sold overseas but first shipped to a UK address

We have a wholesale customer with a business in Antigua that regular travels to and from the UK. They have asked us to ship goods to a family member in the UK until such time that they next visit at which point they will take the goods back with them to Antigua to sell. We use Shopify for our wholesale orders and the shipping address in the UK has triggered VAT at 20%. Were the goods to be collected by the customer directly from our warehouse (ex-works) then I gather that zero rating is allowed under VAT Notice 703 para 2.9, but can the same be said when the goods are sent to family member's address?

Hi,
In order to zero rate an indirect export the conditions in notice 703 section 3.4 would need to be satisfied.
You would need to obtain and keep evidence that your supply is to an overseas business customer and that the conditions have been met, otherwise VAT would be due at 20%.
Please refer to:
Conditions and time limits for zero rating
Thank you.

Hello Thank you very much for coming back to me. As this is a business customer I believe paragraphs 6.6. and 7.3 also apply. With regard to paragraph 7.3, who would normally be responsible for completing Form C88 for customs declaration? Would this be the customer or us as the supplier?

Hi  The C88 is not a form to fill in . It is the output of an electronic customs declaration made to HMRC. If you don’t have the required software to submit a declaration you usually need to use a customs agent to do this on your behalf. They will charge for this service. It’s up to you to decide who should be responsible however legally the exporter named on the declaration must be a person established in the UK . There is a simplified method for merchandise in baggage for goods below £1500. https://www.gov.uk/guidance/taking-commercial-goods-out-of-great-britain-in-your-baggage. As your customer is physically taking the goods out of the country themselves you need to have a good level of trust that they will follow the correct export procedures and provide you with the evidence you need to zero rate.

Hi jamie53,
The business customer who is arranging the export of the goods would be responsible for making any necessary customs declarations.
For further assistance regarding customs queries please contact the customs and international trade helpline on 0300 322 9434.
Thank you.