VTRANS060200 - Zero-rating of international freight transport: Transport of goods
You must read this guidance in conjunction with the place of supply rules published in VATPOSS and VATPOSTR.
Additional detailed guidance can be found in Notice 744B
When goods are transported from a place within to a place outside the UK (and vice-versa), and the place of supply of the transportation is the UK it maybe zero-rated under Group 8, item 5. In the case of imported goods zero-rating applies whether or not the value of the transport has been included in the value of the goods at importation.
Zero-rating applies:
- where goods are transported to or from a place outside the UK
- this includes legs that comprising a longer journey that fulfills the above criteria,
A supplier of such services must hold documentary evidence to show that his service forms part of such an import or export journey - see Notice 744B.
Freight Forwarders
Freight forwarders are specialised hauliers who provide a wide range of services in the field of transport and handling of international freight. There are no special rules relating to the VAT treatment of supplies by freight forwarders, and they will vary in respect of their position as agents/principals, and the place and nature of their supplies. The place of supply of freight forwarding follows the rules set out in VATPOSTR and the liability of supplies of freight transport and related services supplied by freight forwarders is decided by the rules in this book.