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Information on VAT and supplying services abroad

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Running a business comes with a number of responsibilities. Areas like tax and VAT involve a lot of work and rules to remember. However, we are here to help. As accountants, we can offer support with lots of things, including the VAT returns Stoke Newington clients need to fill out.


The technology we have access to today comes in handy in so many situations. An example is how it has made it easy to do business overseas. It is possible to have a large number of international clients with little more than an internet connection and a laptop. What you need to think about though is the tax implications of supplying services abroad.

This is focused on ‘Place of Supply of Services’ rules. It dictates which country’s VAT regulations you follow for every sale. The rules take the nature of the service into account and whether it is B2C (business to customer) or B2B (business to business).

The General Rule

There are specific rules for particular services, but something known as ‘the general rule’ covers most of them. This states that the place of supply is the place where the customer belongs when you are providing services to a business customer. If the service you are providing is to a non-business customer then HMRC states the place of supply is the place where the supplier belongs.

What VAT To Charge And When

If you apply this general rule and you deem the place of the supply is the UK, you will charge UK VAT as normal.

VAT returns Stoke NewingtonHowever, if it is outside the UK but in the EU, you might need to charge EU VAT. You might need to register and account for VAT in the particular country of supply. You should consult that country’s tax authority to make sure you get everything right.

When the place of supply is outside of the EU, this will be out of scope of VAT. You should only record this sale in box 6 of your VAT return.

If they need advice and support with VAT returns Stoke Newington based clients can count on Brian G Lonis. Our services cover a wide range of needs to provide you with first class results. Get in touch with us if you ever want more information about the work we do.