Value Added Tax Act 1994 section 30

Zero-rating

Section 30 establishes the rules for zero-rated supplies of goods and services, explaining how zero-rating works, which supplies qualify, and what happens when goods that were zero-rated on the basis of export are subsequently found still in the United Kingdom.

• Zero-rated supplies attract VAT at 0%, but remain taxable supplies in all other respects, meaning the supplier can still recover input tax on costs related to those supplies.
• Goods and services are zero-rated if they match descriptions listed in Schedule 8, and this extends to services involving a treatment or process applied to another person's goods where the resulting goods fall within Schedule 8.
• Exports of goods, goods shipped as stores for international voyages or flights, and goods for retail sale to passengers on such journeys are zero-rated, provided HMRC is satisfied and any regulatory conditions are met — but not where goods are shipped for someone's private voyage or flight.
• If goods that were zero-rated on the basis of export are later found still in the United Kingdom, or if the relevant conditions are breached, the goods are liable to forfeiture and the VAT that would otherwise have been due becomes immediately payable, although HMRC may waive all or part of that VAT.