Guide
VAT and tax on exports
Zero-rating exports, evidence requirements, rules of origin, and claiming tariff-free trade under UK agreements.
Understanding VAT treatment of exports and rules of origin is essential for competitiveness. Failing to zero-rate exports correctly or provide origin proof costs your customers money, making them choose competitors instead.
Accessing preferential tariffs
The UK has 40 trade agreements with 74 countries and territories (as of February 2025). These agreements allow zero or reduced tariffs, but ONLY if you prove your goods 'originate' in the UK.
Competitive implications
If your EU customer has to pay a 10% tariff on goods that should be tariff-free because you didn't provide a statement on origin, they'll simply source from a competitor who complies correctly. Origin compliance is not optional - it's essential for staying competitive.
Product-specific origin rules
Different Free Trade Agreements have different rules for different products. Simply meeting origin rules under the UK-EU TCA doesn't automatically qualify goods under UK-Japan CEPA or CPTPP. Research each agreement's specific requirements for your product category.