Key takeaways

  • Most services sold to an overseas business customer are outside the scope of UK VAT, because HMRC's B2B general rule says the supply is made where the customer belongs.
  • Most services sold to an overseas consumer carry UK VAT, because the B2C general rule taxes the supply where the supplier belongs, with exceptions such as advisory, accountancy and legal services.
  • Goods you export from Great Britain to the EU, the US or anywhere else outside the UK can be zero-rated if you keep evidence of export, normally within 3 months of the time of supply.
  • Digital services sold to EU consumers are taxed in the consumer's EU country, so you register for the EU scheme or in each country where you sell.
  • Services to land and admission to events follow special rules: land services are taxed where the land is, and event admission where the event takes place.
  • A valid EU VAT number is HMRC's preferred evidence that an EU customer is in business; without that evidence, treat the sale as a consumer sale.
  • Overseas sales that are outside the scope of UK VAT still go in box 6 of your VAT return.

Whether you charge UK VAT to an overseas customer depends on two things: whether you sell goods or services, and whether the customer is a business or a consumer. Most services to overseas businesses and most exported goods carry no UK VAT, while most services to overseas consumers do. This guide sets out HMRC’s rules for customers in the EU, the US and the rest of the world.

Do you charge VAT on services to an overseas business?

Usually not. HMRC’s VAT Notice 741A (paragraph 6.3) says “the B2B general rule for supplies of services is that the supply is made where the customer belongs.” If your business customer belongs in France, Germany, the US or Australia, the supply is outside the scope of UK VAT.

The customer then deals with any local tax, which in the EU usually means a reverse charge.

You must be able to show the customer is in business. HMRC says a valid VAT number is the best evidence for EU customers (paragraph 2.4). For customers without one, such as most US businesses, keep certificates from a tax authority or commercial documents showing business activity. Otherwise, treat the sale as a consumer sale.

Do you charge VAT on services to an overseas consumer?

Usually yes. Under the B2C general rule (paragraph 6.2), the place of supply is where the supplier belongs, so a UK business charges UK VAT at the normal rate even if the consumer lives abroad.

There is an important exception. Paragraph 12.2 lists services that are taxed where the customer belongs when the consumer lives outside the UK. They include:

  • consultants’, engineers’, lawyers’ and accountants’ services, and other advisory services
  • data processing and the provision of information
  • advertising services
  • transfers of copyright, patents, licences and trademarks
  • banking, financial and insurance services
  • supply of staff
  • hire of goods other than means of transport

So a UK accountant advising a private client in New York does not charge UK VAT, but a UK hairdresser serving a tourist does.

Which services follow special rules?

Some services override the general rules for both business and consumer customers.

ServiceWhere it is taxed
Services relating to landWhere the land is
Admission to an eventWhere the event takes place
Digital services to EU consumersThe consumer’s EU country
Hire of transportDepends on length of hire and customer

For land, Notice 741A (paragraph 7.1) says the supply is “where the land itself is located”, so an architect designing a villa in Spain makes a supply in Spain. If the place of supply is an EU country, you may need to register for VAT there. See VAT on land and property for the UK side.

Digital services to EU consumers

Digital services, such as apps, e-books, streaming and online courses, are taxed in the EU country where the consumer belongs. HMRC’s digital services guidance (updated 28 March 2022) says you must either register for the EU’s non-Union scheme in one EU member state or register for VAT in each member state where you sell. The scheme lets you file one return covering all EU sales. See VAT on digital services for UK sales.

Do you charge VAT on goods exported abroad?

No, if you meet the conditions. HMRC’s VAT Notice 703 (updated 4 March 2026) lets you zero-rate goods that leave the UK, including goods sent from Great Britain to the EU and the US. The conditions “must be met in full.”

  1. Export the goods within 3 months of the time of supply (6 months for goods sent for processing).
  2. Keep evidence of the supply: the order, sales invoice and proof of payment.
  3. Keep evidence of export: a customs declaration with departure confirmation, or commercial transport documents.
  4. If the customer collects the goods (an indirect export), get stronger evidence, as the VAT risk sits with you.

If you miss the time limit or lack evidence, you must account for UK VAT. For low value parcels to EU consumers, HMRC’s IOSS guidance (updated 19 February 2026) covers consignments of £135 or less. Read VAT on imports and exports for more.

Goods moving to Northern Ireland follow different rules because of the Windsor Framework, so check those separately.

Which applies to you?

  • If you sell services to an overseas business, do not charge UK VAT; keep evidence of business status.
  • If you sell advisory or professional services to an overseas consumer, do not charge UK VAT under paragraph 12.2.
  • If you sell other services to an overseas consumer, charge UK VAT.
  • If you sell digital services to EU consumers, charge the customer’s local VAT and register for the EU scheme.
  • If you export goods, zero-rate them and keep export evidence.

How to show overseas sales on your VAT return

Put the net value of all overseas sales in box 6, including zero-rated exports and services that are outside the scope of UK VAT. HMRC’s place of supply page says sales outside the EU still go in box 6. Our guide to completing a VAT return explains each box, and the VAT calculator works out VAT on UK sales.

What to do now

  1. List your overseas customers and mark each as business or consumer.
  2. Collect VAT numbers or other evidence for every business customer.
  3. Check your services against the paragraph 12.2 list.
  4. Set up your invoice template to show no UK VAT and the reason, such as “outside the scope of UK VAT” or “reverse charge”. HMRC’s notices do not set mandatory wording, so check the customer country’s rules.

Frequently asked questions

Do I charge VAT to EU business customers after Brexit?

Usually not for services. The supply is made where the business customer belongs, and the customer accounts for any EU VAT under the reverse charge.

Do I charge VAT to US customers?

Not on most services to US businesses or on exported goods with valid evidence. You may need to charge UK VAT on some services to US consumers, unless they fall within the paragraph 12.2 list.

What evidence shows a customer is in business?

A valid VAT number is HMRC’s preferred evidence for EU customers. Otherwise, use certificates from a tax authority or commercial documents showing business activity.

Do overseas sales count towards the UK VAT registration threshold?

Zero-rated exports count towards the £90,000 threshold. GOV.UK says taxable turnover excludes exempt and “out of scope” supplies, which covers services treated as supplied abroad.

Sources

Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.