(1) The general position

(a) Physicals/actuals and forward sales

For physicals/actuals and forward sales contracts the VAT liability is determined partly by the nature of the commodity and partly by the place where they are located. For goods which are located in the UK, this means that the general rule is that they will be subject to VAT at the standard rate unless the goods are either:

zero-rated as exports (VATA 1994, s. 30(6) and (7);

zero-rated as foodstuffs (VATA 1994, Sch. 8, Grp. 1) – e.g. cocoa, coffee, grain, meat, sugar, vegetable oil and soya bean meal; or

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