Export controls

Exports of some goods are controlled. You may need to apply for a licence, or comply with specific regulations. This article explains what the main categories are, where to find more information and how to apply for a licence.

Weapons and other goods and technologies with a potential military use may require an export licence from the Department for Business, Innovation & Skills (BIS). All military controlled items and some highly sensitive dual-use goods need a licence, even if the export is made to another European Union (EU) country.

Less sensitive controlled dual-use goods exports need a licence if shipped outside the EU. Controls also apply to the brokering - which can include warehousing and shipping - and transport of dual-use goods. There are wider restrictions on exports to countries subject to sanctions.

Agricultural products and processed foods typically require a Common Agricultural Policy licence from the Rural Payments Agency (RPA). They may also be subject to a refund or a levy. Exports of valuable antiques and works of art may need a licence from the Export Licensing Unit of the Museums, Libraries and Archive Council.

Exports of dangerous chemicals outside the EU may need to be notified in advance to the Health & Safety Executive (HSE) and BIS. Businesses that trade more than one tonne of chemicals a year must register with the new EU chemical management agency REACH, based in Helsinki.

Live animals, meat and plants may need licensing and health inspection from various UK-based government agencies before your goods reach their destination. Other products subject to export controls or licensing requirements include medicines and controlled drugs and the chemicals used in their manufacture, rough diamonds being exported out of the EU, exported waste and toothfish. Your trade association may be able to advise on export controls applying to your products.

Vat on exports and other export taxes

VAT is handled differently depending on whether you're selling to a customer within the European Union (EU) or outside the EU. This article explains when you have to charge customers VAT, when you don't, and what records to keep.

Sales of services to other businesses are charged VAT where your customer is based, not where your business is established. If you are supplying services to private customers, the rule is that VAT is charged where the customer is based. In most cases, you and your customers can use the VAT reverse charge procedure to get your VAT back.

If you aren't sure if your customer is in business, ask them for a VAT number. If the customer is not VAT registered, then you can use other evidence, such as letters from their tax authority or Chambers of Commerce.

You must include sales figures within the EU on your VAT return. You must also send HMRC a European Community (EC) sales list giving details of sales to VAT-registered customers. Every business trading within the EU has to declare its sales on its VAT return. If your sales of goods exceed the current exemption threshold, during a calendar year you must also submit Intrastat returns each month.

Two thresholds for Intrastat apply: £250,000 for your sales and £600,000 for Arrivals (or purchases). The threshold is reviewed annually.

All businesses with an annual (VAT exclusive) turnover of £100,000 or more, and all new businesses registering for VAT, must file their VAT returns online and pay VAT due electronically.

Goods being exported outside the EU can be zero-rated as long as you:

ensure they leave the EU within set time limits (typically three months)

keep satisfactory evidence of their shipments

hold sufficient evidence from your accounting records to prove that a transaction has taken place

The detailed rules depend on whether you're exporting the goods directly, when you organise delivery, or indirectly, when your customer arranges collection. For exports of agricultural goods and processed foods covered by the Common Agricultural Policy, you may also be entitled to a refund or required to pay a levy.