Export evidence for zero rating of sales to US

The taxpayer exported medical products to two business customers in the US during December 2018 and January 2019. The sales were zero rated as exports to a place outside the EU but HMRC was not satisfied with the documentary evidence produced by the director to prove that the goods had been exported. The evidence must be obtained by the exporter within three months of the time of supply ie the date of export. HMRC issued an assessment to treat the sales as standard rated. The taxpayer appealed.

The First-tier Tribunal reviewed the export documents against HMRC’s Notice 703 which has the force of law in both specifying the relevant time period for proof of export to be obtained by a seller – three months – and the quality of evidence that must be sufficient to show that the goods have been shipped abroad. The...