The information on this page is for general guidance only and should not be taken as definitive VAT advice, since individual circumstances may vary. For details of your obligations on sales of goods abroad, please refer to HMRC guidance.
•Sales of goods by businesses in Great Britain (the United Kingdom excluding Northern Ireland) to customers outside of the United Kingdom (in both EU and non-EU countries) are classed as exports.
•Sales of goods by businesses in Northern Ireland to customers in non-EU countries (except the United Kingdom) are also classed as exports.
•Sales of goods by businesses in Northern Ireland to customers in EU countries are classed as dispatches and are treated the same way as intra-EU sales of goods - see Sales of goods to the EU from Northern Ireland)
•Sales of goods between Great Britain and Northern Ireland are classed as domestic sales for UK VAT - see Sales of goods between Great Britain and Northern Ireland
Exports of goods are also generally zero-rated for UK VAT, subject to certain conditions. If these conditions are met, you can zero-rate exports as follows:
•Set up the product as zero-rated:
oselect Set Up>Invoices>Products and Services
oSelect the product and click on Properties (or create a new product) and then select Zero rate from the VAT rate drop-down.
NB: If you have set up VAT cash accounting in VT Transaction+, do not select Zero rate as the VAT rate, but select Outside Scope.
•In the Output VAT field in the transaction dialog, either:
oEnter 0, or;
oselect No VAT from the list, or;
oCreate a 0% VAT rate for the list by selecting Set Up>VAT>VAT rates, increasing the number of VAT rates in the Number of VAT Rates drop-down and entering 0 for the new rate.
NB: If you have set up VAT cash accounting in VT Transaction+, the analysis account entered in the transaction should be set to not being within the scope of VAT. To change this, un-tick Entries analysed to this account are normally within the scope of of VAT as described in Transactions outside the scope of VAT.
If on cash accounting, you will also need to enter the following journal to ensure that the net value of the sale is picked up in box. 6 of your VAT return.
Completing your VAT return
When you run the VAT return, no VAT will be included in Box 1, and the net value of the export will be included in Box 6:
VAT return element
Included in VAT return
Amounts included £
Net value of export
Box 8 is for intra-EU sales of goods (and sales of goods from Northern Ireland to the EU) so will no longer apply for sales of goods from GB to EU customers.
•If your sales to overseas customers are zero-rated for UK VAT, you may have a liability to VAT or sales tax in the countries of the customers, subject to certain sales thresholds and conditions. You should refer to the websites of the tax authorities of those countries to check your obligations in this respect.
•If you have a liability to VAT or sales tax in another country, their VAT or sales tax return cannot be done in VT Transaction+. However you can record the VAT or sales tax due in VT Transaction+ and run reports to provide most of the information needed for the foreign VAT or sales tax return; please refer to VAT due in other countries.
•If the conditions for zero-rating of VAT are not met, UK VAT is due, and the sale is accounted for in the normal way for a UK sale as described in here.
•The EC Sales List is no longer required for businesses in Great Britain.