Supplies made to countries outside the EU are outside the scope of UK and EU VAT and are not charged on the invoice.
The system will automatically determine whether to add VAT or not based on the country information entered when adding your international client details into the system, and whether you have a VAT number for EU clients.
The European Commission, Taxation and Customs Union provide an
online VAT number validator, which you can use to validate your EU client's VAT registration number. Please note that The Accountancy Cloud is not responsible for the accuracy of data and services supplied by external websites.
Use the aid provided below to determine the VAT you should apply when trading internationally.
1) Supplies of Goods
- If the Export (known as Dispatches) is to a EU customer
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Customer VAT registered in own country |
Customer NOT VAT registered in own country
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This supply for goods is Zero rated. |
This supply is UK standard rated |
- If it's an Export to a Non EU customer
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This supply for goods is Zero rated. |
2) If you're providing services overseas
You need to consider where the route of supply is, generally you can apply these rules;
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You supply services to a: |
The place of supply is: |
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Business customer |
The place where the customer belongs |
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Non-business customer |
The place where your company is based |
Once this has been determined you can apply the following;
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If you are in the UK and the place of supply of your service is in the UK |
If you are in the UK and the place of supply of your service is in another EU country |
If the place of supply of your service is not in the EU |
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This supply of service is UK standard rated |
This supply is outside the scope of VAT |
This supply is outside the scope of VAT |
3) Selling digital services within the EU
There are special rules in place from 1st January 2015 on the supplies of electronic services