Cross-border VAT issues

Cross-border VAT rules are complex and seeking specialist advice, to ensure both compliance and tax efficiency, is a wise move.

Our International Tax team are ideally placed to assist firms already involved in cross-border trade or those preparing to do business abroad. Some key cross-border VAT issues include:

  • Generally speaking, goods exported outside the EU or to VAT-registered businesses within the EU are eligible to be zero-rated for VAT. VAT on goods imported from within or outside the EU can be reclaimed.
  • Where a transaction occurs between businesses involving services, the place of supply is usually regarded as the country where the customer is based.
  • When a business buys services from a business in another country, they must account for the VAT under the reverse charge.
  • For business to non-business supplies of most services, UK suppliers charge UK VAT to overseas customers.
  • UK-VAT registered businesses that supply taxable goods or services to EU businesses, where the place of supply is the customer’s country, must complete an EC Sales List (ESL) every calendar quarter.
  • Claims for recovery of VAT incurred in other EU countries must be made via an electronic system.

Our team are able to advise and work with your business, ensuring the VAT systems are operating correctly, whilst remaining compliant and meeting all VAT obligations in the most efficient manner.

To find out how our international tax advisers can help you, please contact us.