Help Centre

What are the general rules for VAT?

There are general rules which apply for VAT which are simply the first step, VAT can be complex depending on your own circumstances such as type of business and structure. The following are guidelines only so if you would like any support below please talk to us and we'd be happy to help. 

Guidelines for dealing with VAT

  • Sale to EU non VAT registered – treat as UK sale. Add 20% VAT. Not on EC Sales list.
  • Sale of goods to EU VAT registered – 0% VAT. You can zero rate if you have a valid VAT number. EC sales section on VAT return. Include on EC Sales list.
  • Sale of Services to EU VAT registered – 0% VAT. Not on EC sales section. Include on EC Sales list.
  • Sale of E-Services to non VAT registered EU customers - VAT MOSS scheme applied, bill at local rate of VAT 
  • Purchase of Goods from EU VAT registered – Treat as EC acquisition. Included in EC acquisitions sections on VAT return.
  • Purchase of Services from EU VAT registered – Reverse charge, include in sales and purchases. Nil VAT liability.
  • Sale of Services to non-EU VAT registered business or non EU non VAT registered business - outside of scope of VAT
  • Purchase of Services from non-EU/EU non VAT registered business - Reverse charge, include in sales and purchases. Nil VAT liability.
  • Sale of Goods to non-EU VAT registered business or non EU non VAT registered business - You can zero rate the supply if exporting directly. 
  • Purchase of Goods from non EU VAT registered business -  Add 20% VAT, need C79 certificate as proof of import. 

HMRC guidelines are below:

Place of supply rules: https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services/vat-notice-741a-place-of-supply-of-services

Dealing with exports: https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroad

Dealing with Imports: https://www.gov.uk/government/publications/vat-notice-702-imports/vat-notice-702-imports

VAT MOSS: https://www.gov.uk/guidance/register-and-use-the-vat-mini-one-stop-shop

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.