Reg. 07380272 · England & Wales · Est. 2010
Exporting goods or services?
Ensure your export VAT zero-rating is properly documented and get advice on place-of-supply rules for international services.
Total Supply Value
£12,000.00
Total VAT Due
£0.00
VAT Saving vs Domestic
£2,400.00
VAT on Goods
£0.00
VAT on Services
£0.00
Zero-Rated
Yes
- Goods exported with proof of export – zero-rated (0%)
- B2B services to overseas customer – outside UK VAT scope
Zero-rated: This export qualifies for zero-rating. You do not charge VAT but can still reclaim input VAT on related purchases.
Everything you need to know about VAT on exports from the UK
What is export VAT zero-rating?
When UK businesses export goods outside the UK, the supply can be zero-rated for VAT purposes under VATA 1994 Schedule 8 Group 13. This means you charge 0% VAT instead of the standard 20% rate. The key advantage over being VAT-exempt is that zero-rated businesses can still reclaim input VAT on purchases related to the export. To qualify, you must hold valid proof that the goods have physically left the UK within the required timeframe — typically 3 months from the date of supply.
How do place of supply rules work for services?
The VAT treatment of exported services depends on the “place of supply” rules. For B2B supplies (business-to-business), most services are treated as supplied where the customer belongs — so if your customer is outside the UK, the supply is outside the scope of UK VAT. For B2C supplies (business-to-consumer), services are generally supplied where the supplier belongs, meaning UK VAT applies. There are exceptions for certain services like land-related services, events, and digital services, each with their own specific rules.
What proof of export do I need?
HMRC requires you to hold evidence that goods have been exported from the UK. Acceptable proof includes official customs documentation (export declarations), shipping company documentation (bills of lading, airway bills), certificates of shipment, or a combination of commercial evidence such as customer orders, correspondence, and payment records. You must obtain this evidence within 3 months of the date of supply. Without adequate proof, HMRC can assess VAT at the standard rate on the supply.
Do I need to complete an EC Sales List?
Since Brexit, the EC Sales List (ESL) is no longer required for most UK businesses trading with EU countries. Exports of goods to the EU are now treated the same as exports to any other non-UK destination and follow the standard zero-rating rules. However, if you are registered for VAT in Northern Ireland under the Northern Ireland Protocol, you may still need to submit EC Sales Lists for goods movements to EU member states, as Northern Ireland continues to follow EU VAT rules for goods.
What is the difference between B2B and B2C exports?
For goods, the VAT treatment is generally the same whether you sell to a business or a consumer abroad — exports can be zero-rated provided you have proof of export. For services, the distinction is critical. B2B services to overseas customers are usually outside the scope of UK VAT (the customer accounts for VAT in their own country under reverse charge). B2C services to overseas consumers are generally subject to UK VAT at 20%, unless they fall into specific categories like digital services to non-EU consumers, which may be outside the scope.
What is VAT triangulation?
Triangulation occurs when three businesses in different countries are involved in a single transaction — for example, a UK business buys goods from country A and has them shipped directly to a customer in country B. Special VAT simplification rules can apply to avoid the intermediate business needing to register for VAT in the country of dispatch or arrival. Post-Brexit, triangulation involving UK businesses and EU member states follows different rules than when the UK was in the EU. The simplification may still be available for Northern Ireland Protocol transactions.
HMRC-Aligned: This calculator uses current HMRC guidance on export VAT zero-rating, place of supply rules, and proof of export requirements for the 2025/26 period. VAT treatment can vary based on the specific nature of goods and services. For complex cross-border transactions, consult a VAT specialist or customs broker.
This calculator uses official rates and thresholds from:
Last verified: February 2026 · Tax year 2025/26. Results are indicative — consult a qualified accountant for personalised advice.
Reviewed by M. Samiuddin Quadri, ACCA — Chartered Certified Accountant at Gladstone & Co. · Updated for the 2025/26 tax year.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms