VAT on overseas services

The VAT Complexities of Supplying Services Abroad


We can not deny that technology today is the reason that international business has reached its peak and has become more than accessible. It’s just a game of having the availability of a laptop and a good connection and there you go. Any kind of freelancer can offer services internationally. Even the small initiates in the business world can connect with rafts and work for clients that are looking for relevant services on an international level. However, you do not need to forget about the tax implications that come with foreign services or supplies abroad. Predominantly, this procedure is a kind of revolves around VAT on overseas services and the place that is used to supply the services.

Moreover, this will help to identify which country’s rules are to be followed and considered for the sale of specific services or products. This depends on the nature of your that will decide the rules of supplies as well. You might have chosen the supply for a business-to-business method which is also known as B2B. You could also opt for the options business to the client which is known as B2C. Further in the discussion of this article, you will get to know about the method of charging VAT when your services are supplied abroad. This will be useful even if you are supplying the services in the UK as an international client has asked you to do it for him.


Seek no further help after contacting CruseBurke’s team of experts and advisors about VAT on overseas services with peace of mind and within your budget.


VAT on Overseas Services – What is General Rule?

As you might know already there is a common set of rules and caveats to keep track of certain services. The general rule introduced by HMRC has covered a lot of information about it and has guided the suppliers from basic to detailed information about the rules and certainties to follow when being a supplier to deal with international clients. The general rule provided by HMRC says that if you aim to deal with a business customer that means you are following B2B. The place of supply will be considered from the place that your customer belongs to.

For instance, if your customer is from the US, you will deal according to their set of rules. On the other hand, if you are offering your services to a customer who is considered non-business, the place of supply will be considered the place from where the supplier belongs according to the general rule of HMRC.


When and What Can You Charge as VAT on Overseas Services?

As mentioned earlier that it turns out to be that the place of supply is considered the UK after you have applied the general rule. You are now obliged to follow the general rule that is applicable in the UK. On the other hand, when you are dealing with a case that turns out to be within the EU after the general rule is applied, you will have to consider EU VAT to be charged. However, such a case will rewire an account registration for VAT in the country that is being used for the supply. Now let’s suppose that the place of supply is even out of the EU. This is considered to be out of scope in the case of VAT. Box 6 of the VAT return will be used to record the sales.


The Bottom Line

Now that you have gathered a fair amount of information about VAT on overseas services, we can say that we can not deny the complexity of dealing with clients internationally and following the relevant set of rules to consider whether the business activity is business-to-business or business-to-client. However, this will help you to identify the accurate procedure and follow it accordingly. This will ensure seamless processing in the future. We hope these few minutes of reading will help you to develop a better understanding to deal with VAT obligations in the future.


Are you stressed about VAT on overseas services? Feel free to contact our team of tax advisors and accountants to help you find accurate information and guidance.


Disclaimer: All the information provided in this article on VAT on overseas services, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.

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