VAT Refunds on Exported Shipping Containers

On many occasions, shipping containers purchased from us will be used for exporting goods abroad. In these cases, VAT can be refunded. VAT refunds on exported containers are only valid when the shipping container has been exported outside of the UK.

This is not for bigger VAT registered business only, this is for individuals and smaller (non-VAT registered) businesses. This is of less relevance to a VAT registered business who can reclaim VAT costs already.

VAT only applies to goods and services that are consumed within the UK. If you export your container and stock outside of the UK, VAT does not apply.  Therefore, goods exported can be zero-rated. There are some conditions that must be met for this to apply.

You can find more detailed information on VAT of exported goods here. If you are completely new to shipping containers and exports you can also take a look at our helpful guides for export.

VAT Refunds

What Evidence Do I Need?

For us to process a VAT refund for your exported container we do require some evidence from you. We need official proof that the container has left the UK and is no longer subject to VAT.

We will need to see a copy of the Bill of Lading. This is a detailed list of cargo on a ship. It is given as a receipt by the master of the ship to the receiver of the goods.

We need a copy of the original bill of lading document and not the draft document. Other proof of export documents may be possible, but this is the routinely used document to prove your container has been exported.

Do I Have to Pay VAT If I Plan To Export?

You will still have to pay VAT when you purchase a shipping container from us. Once you have exported the container and have provided the Bill of Lading for evidence, we can refund your VAT.

The reason for this, at the point we sell you a shipping container, we can’t prove to the taxman that you are exporting the container. We can only prove this once you show us the export documents. This is why we need to charge the VAT initially, and then refund it.

How Long Do I Have To Export My Container?

In order to claim your VAT refund, your container must be exported within 3 months of purchase from us. You will also need to have official evidence that the container has been exported within those 3 months.

Can I Have A Refund If Exporting To Europe?

Now that the UK is no longer part of the European Union, shipping containers can be zero-rated if exported out to Europe.

How Long Do I Need To Keep Export Documentation?

For a zero rating, you must keep the proof of export for 6 years. It must also be available for any VAT officer if they visit.

If you do not have the correct export evidence the goods will be subject to VAT. This also applies if the evidence is not within the correct time frame.

Freight Forwarders

You can hire a freight forwarder or shipping company to export your shipping container for you. They can handle the whole export transaction and produce the necessary customs export declarations for you.

Freight forwarders and shipping companies should make reasonable steps to ensure that the goods are as described by you. They will also ensure to complete all pre/post shipment customs formalities.

They will also keep records of all of your export transactions and obtain evidence of export and provide this to you. You can then use this to claim your VAT refund.

Please bare in mind, that even when employing an agent, all responsibility to follow the rules is on you.

Budget Shipping Containers Makes VAT Refunds Easy

We try to be as helpful as possible to all customers when buying containers, and this doesn’t stop once you’d paid.

The vast majority of all our VAT refunds are paid within 7 days of receipt of proof of export. No messing about, no dragging our heels and paying in a month or two.

Its worth highlighting that this refund applies to all goods exported, as well as associated transport costs in your export ‘move’. (eg the delivery of your shipping container that’s used for exporting goods). This also applies to goods that you are exporting inside your shipping continuer if you paid VAT on those goods.

You can only reclaim the VAT from each person you bought the goods from directly, so if you are filling your shipping container with goods that you’d paid VAT on keep all the receipts and make sure these items are clearly stated on your export documentation to allow you to reclaim the VAT on those goods as well!

Contact Us

Budgetshippingcontainers.co.uk offer the UK’s largest online range of shipping containers for sale with a nationwide network of storage and conversion yards and crane equipped delivery vehicles.

If you need a shipping container feel free to browse our online range of shipping containers for sale. You can also call us on freephone 0808 1234 215 any time 9am – 5pm weekdays and our team will be happy to discuss your requirements. Alternatively, you can use our online shipping container quote form or request a telephone callback. In both cases we aim to get back to you within 1-2 working hours (may take longer for more detailed quotes).

For more information on VAT Refunds on Exported Shipping Containers talk to Budget Shipping Containers