How long does HMRC take to process a VAT refund?
Routine VAT returns are processed within 10 working days. Refunds flagged for inspection can take 30-90 days and may require you to supply the full export evidence pack.
Reclaiming VAT on UK Car Exports: A Practical 2026 Guide
A plain-English 2026 guide to reclaiming VAT when you export a car from the UK — who qualifies, which evidence HMRC needs and how to avoid refund refusals.
Frequently asked questions
Can I zero-rate the sale if the buyer collects the car themselves?
Yes, under the indirect export rules, but the evidence burden is higher and HMRC scrutinises these cases closely. Most exporters prefer to arrange shipping directly to keep the audit trail clean.
Does Brexit affect VAT on exports to the EU?
Yes — since January 2021 sales from Great Britain to EU customers are treated the same as any other export and are zero-rated, with import VAT and duty payable on arrival in the destination country.
What VAT rate applies if the car never leaves the UK?
Standard 20% UK VAT applies in full. If your overseas buyer changes their mind and the car stays in the UK, you must reverse the zero-rating and account for output VAT.
Get a free quote · WhatsApp +44 7376 584421 · info@theshipcars.co.uk