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Posted Tue, 25 Jun 2024 22:19:02 GMT by CrownServant2024
Hello, I am due to move overseas as a Crown Servant on an official deployment with HM Government (so I will not be resident in the UK). If I purchase some goods from a vendor / supplier from their store in the UK and subsequently get an agent to take these goods outside of the UK (Indirect export section 2.9), do I qualify for zero-rating of VAT or does zero-rating only apply for direct exports? I wondered how section 2.9 intersects with section 7.12 where "you can zero rate the supply of goods ordered by ... British diplomats abroad that are delivered to the FCDO". Thank you.
Posted Fri, 28 Jun 2024 08:47:14 GMT by HMRC Admin 21 Response
Hi Riccardo Ib,
As per the guidance below the supplier cannot treat a supply of goods as an indirect export if they are purchased by a UK resident or visitor for their personal (non-commercial) use:
VAT on goods exported from the UK (VAT Notice 703)
If the goods are sent by the supplier to a destination outside the UK, however and the supplier is responsible either for arranging the transport yourself or appointing a freight agent then they should charge you at the zero rate as a direct export.
If you are classed as a diplomat then a supplier can zero rate the supply to you if the goods are delivered to the FCDO or FCDOS (formerly the FCO, FCOS and Department for International Development) for export through diplomatic channels within 3 months of the time of supply.
Thank you.
Posted Wed, 14 Aug 2024 22:24:59 GMT by CrownServant2024
Hi, I am now classed as an "overseas person" as I have relocated and am not resident in the UK. Section 11.3 says that "If the goods are either subsequently exported or you later obtain evidence of export you can then zero rate the supply and adjust your VAT account for the period in which you obtained the evidence. This is provided that the goods have not been used in the UK prior to export (unless specifically authorised by HMRC) and in the case of an indirect export, the goods have been supplied to an overseas person (as defined in paragraph 2.4)." Can I now qualify for zero-rating of VAT if I can evidence that the goods purchased in the UK are then taken outside of the UK by my agent? Thank you.
Posted Thu, 15 Aug 2024 11:46:35 GMT by HMRC Admin 25
Hi CrownServant2024
The supplier can only zero rate the indirect export of goods to you if  the supplier meets the condtions at sec 3.4 of Notice 703.
If the goods were sold to you while you were a UK established person then the supplier would not have met the conditions under section 3.4 at the point of the sale and so the supplier would need to be careful as to applying these conditions.
Thank you. 

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