How can I reclaim VAT when I export vehicles outside of the UK? 

Copart UK is a business that trades and operates within the UK, therefore we charge VAT at the current rate in accordance with the UK VAT rules set out by HMRC. VAT is applied to: 

• All fees payable for vehicles purchased through Copart’s online auctions; and 

• The hammer price of vehicles purchased through Copart’s online auction, where the vehicle is identified as being subject to VAT. 

Therefore, when you purchase a vehicle through Copart’s online auction, you are committing and agreeing to pay VAT on the vehicle (where applicable) and the fees associated with the purchase of the vehicle. 

VAT is a tax levied on goods and services consumed in the UK. When goods are exported, they are ‘consumed’ outside the UK and to impose VAT on such goods would be contrary to the purpose of the tax. Therefore, the supply of exported goods can be zero-rated provided certain conditions are met.  

These conditions must be met before supplies of goods for export can be zero-rated. The supplier must obtain and keep evidence to prove entitlement to zero-rating. The conditions are: 

• the goods must be physically exported from the UK. 

• evidence of export must be obtained to support zero rating. 

Only exports that comply with these conditions are eligible for zero rating. 

Vehicles purchased through our online auction website that are VAT qualifying cannot be zero-rated at the time of purchase as the conditions listed above are not met. Copart does not carry out the exportation of the vehicle, neither are we involved in this process; therefore, we have no way of confirming that the vehicle has been exported or will be exported outside of the UK prior to purchase. 

If you are registered for business purposes in a country outside of the UK, you may be able to make a claim for the VAT element that you paid after the vehicle has been exported, subject to eligibility. 

If you are not eligible to make the claim through HMRC, as instructed by HMRC, Copart can issue a credit of the VAT amount provided certain conditions are met within the specified time limits.  

A supply of goods to an overseas customer sent to a destination outside the UK is liable to the zero rate as an indirect export where the overseas customer (VAT Notice 703 sec 3.4): 

• exports the goods from the UK within the specified time limits. 
• must obtain as provided by the customer, valid official or commercial evidence of export as appropriate within the specified time limits. 

The specified time limits for indirect exports are 3 months from the purchase date. If you have not exported the goods within the time limits, or do not hold the necessary evidence to show that the goods have been physically exported, Copart UK cannot zero rate the supply and must account for VAT at the appropriate UK rate (VAT Notice 703 sec 3.5). As such, we would not be able to offer a credit of the VAT amount paid. 

Evidence must show the goods supplied have left the UK. Copies of transport documents alone will not be sufficient. Information held must identify the date and route of the movement and the mode of transport involved. 

If we do not have the correct export evidence, within the appropriate time limits, then the goods supplied remains subject to VAT at the appropriate UK rate. 

To apply for a VAT credit refund, please contact financialcontrol@copart.co.uk  

We will advise you of the documents required and the next steps in the process for obtaining your refund.