Last updated: 14 October 2026
Do you charge VAT on services sold to customers in the EU or outside the UK?
For most services sold to business customers outside the UK, including the EU, you don’t charge UK VAT. The place of supply is where the customer belongs, so the supply is outside the scope of UK VAT and the customer accounts for any local VAT under the reverse charge. For consumers, the general rule is that UK VAT applies, but there are many exceptions, including digital services, land-related services and some consultancy services supplied to consumers outside the UK.
The general rules
| Customer | General rule | UK VAT? |
| Business (B2B) outside the UK | Place of supply is the customer’s country | No; outside the scope |
| Consumer (B2C) in the EU | Place of supply is the UK (general rule) | Yes, 20%, unless an exception applies |
| Consumer outside the EU and UK | Place of supply is the UK for most services | Yes, unless an exception applies |
Important exceptions
- Digital and electronically supplied services to consumers: taxed where the consumer lives; for EU consumers you may need to use the EU’s non-Union One Stop Shop
- Land-related services: taxed where the land is, for example architects’ or estate agents’ services for a property in Spain
- Admission to events: taxed where the event takes place
- Professional services to consumers outside the UK and EU: consultancy, legal, accountancy, advertising and some other services are outside the scope of UK VAT when supplied to consumers who belong outside the UK
- Transport and hire of means of transport: special rules apply
Evidence of business status
To treat a sale as B2B, keep evidence that the customer is in business. For EU customers, a valid EU VAT number checked on the VIES system is the best evidence. For customers elsewhere, use business registration documents or tax numbers.
Invoicing
For B2B services outside the UK, show the net amount and a note such as “Reverse charge: customer to account for VAT” for EU customers, or “Outside the scope of UK VAT” for others. Include the customer’s VAT or business number.
Example
A London marketing agency sells a £12,000 campaign to a German company with a valid VAT number. No UK VAT is charged, the invoice is marked reverse charge, and the German company accounts for German VAT. The same agency sells a £2,000 consultancy to a private individual in Canada, which is also outside the scope of UK VAT under the professional services exception.
VAT return treatment
Include outside-the-scope service sales in box 6 as HMRC’s guidance requires. You can still reclaim VAT on related costs, if the supply would be taxable in the UK.
Mixed contracts
If a contract covers several services with different place-of-supply rules, such as consultancy plus event tickets, split the price between them on the invoice.
Frequently asked questions
Do I charge VAT to a French business customer?
No, if they’re in business. Keep evidence.
What about a French consumer?
Usually UK VAT applies, unless an exception applies.
Do I need an EU VAT registration?
Possibly, for digital services to EU consumers or some land-related services.
Does Northern Ireland follow different rules?
For services, Northern Ireland follows UK rules.
Related: VAT on services bought from abroad and software sales overseas.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with VAT on international services. See our VAT accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
