Can you charge VAT to a foreign company?
If you provide services to customers outside the EU, you usually do not charge VAT. However, if the service is used in another EU country, that country can decide to charge the VAT. You may still deduct the VAT that you paid on related expenses, such as for goods or services purchased specifically to make those sales.
Do I charge VAT to companies outside the UK?
If the place of supply of your services is outside the UK you should not charge UK VAT but, as you may need to account for the local tax, you’ll need to consider the tax rules of the country into which you are making your supply.
Do I have to charge VAT to overseas customers?
If you’re in the UK and the place of supply of your service is in an EU country, you do not pay UK VAT. But for some supplies, you may need to register and account for VAT in the country of supply. You must check with the tax authority in that country to find out how to treat the services you’re supplying.
Do you charge VAT to other businesses?
VAT is short for ‘Value Added Tax’, and is charged on most sales of goods and services in the UK. When your business makes sales, you don’t charge VAT to your customers unless you’re registered with HMRC to do so. Sales on which VAT would normally be charged are called “taxable sales” or “VATable sales”.
Do you charge VAT to US companies?
The majority of goods exported to the US can be zero-rated for VAT. In other words, you don’t need to charge VAT on the exported goods or the extra charges such as shipping and delivery.
Do I charge VAT to EU countries?
At the moment, for EU transactions, VAT is generally not charged on the supply of goods between businesses from another European country by the supplier. Instead, a business recipient is generally required to charge itself VAT, known as acquisition VAT, which is typically an accounting transaction on the VAT return.
Is VAT charged on services to non EU countries?
Most services, supplies, and goods you supply to countries outside the EU are considered outside the scope of UK VAT and therefore exempt.
Do I charge VAT for services to EU countries after Brexit?
Post Brexit B2B
EU states will be a foreign country for UK VAT purposes. After Brexit the general position will be that where an EU business provide services to a business customer in the United Kingdom, VAT will not be chargeable in the supplier’s state.
Should UK companies charge VAT to EU?
VAT registered UK businesses will continue to zero-rate sales of goods to EU businesses. EU member states will treat goods entering the EU from the UK in the same way as goods entering from other non-EU countries. This means import VAT is due when the goods arrive in the EU.
Do I charge VAT to a Spanish company?
According to the general B2B rule, any business not established in Spain supplying services to a Spanish registered customer will not charge any VAT and the transaction will be reverse charged by the customer. There are however a number of exceptions to this rule.