Does UK charge VAT to EU countries?

Value Added Tax (VAT) is a tax on the consumption of goods and services. In general, a business charges its customers VAT on its sales (output tax). The UK VAT system operates within parameters set by EU VAT directives, a system that only applies to EU member states.

Do I need to register for VAT in other EU countries?

For companies operating across the European Union (EU), there may be a requirement to register their business with a VAT number in another EU country. The requirements for this vary from country to country, but are based on the EU’s VAT Directive, which should be implemented into local legislation by each member state.

Do you charge VAT on sales to EU countries?

If you sell goods to a business and these goods are sent to another EU country, you do not charge VAT if the customer has a valid EU VAT number. You may still deduct the VAT that you paid on related expenses, such as for goods or services purchased specifically to make those sales.

Is the UK still in the EU for VAT purposes?

The UK remained within the EU customs and VAT systems, for example. This meant there were no trade borders between the UK and EU countries, and therefore no customs formalities. However, significant adjustments are now required for businesses that import or export to the EU.

Which countries does VAT apply to?

The EU countries with the highest standard VAT rates are Hungary (27 percent), and Croatia, Denmark, and Sweden (all at 25 percent). Luxembourg levies the lowest standard VAT rate at 17 percent, followed by Malta (18 percent), and Cyprus, Germany, and Romania (all at 19 percent).

Do I charge EU customers VAT after Brexit?

After Brexit, businesses based in Great Britain (England, Scotland, and Wales) can no longer apply the reverse charge to EU sales. If your business is based in Great Britain, and you sell goods to EU businesses, you will not apply VAT to your invoices.

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 have to pay duty on items shipped from Europe?

You’ll be charged Customs Duty on all goods sent from outside the UK (or the UK and the EU if you’re in Northern Ireland) if they’re either: excise goods.

How do you get a VAT number in the EU?

VAT numbers usually start with an ISO 3166-1 alpha-2 country code, followed by two or more characters, up to thirteen. Though VAT numbers usually consist of numeric digits only, some western countries have VAT numbers that also contain letters. (Also, fair warning, foreign countries outside of the EU may have a VAT number starting with “EU.”)

When do VAT rules change between UK and EU?

From 1 January 2021 following the end of the transition period with the EU the VAT rules applying for supplying services between the UK and EU member states will become the same as the current rules for supplying services from the UK to outside the EU.

Do you pay VAT when you sell services to the EU?

This means that EU VAT will be due on all supplies of digital services to EU consumers, regardless of the value of the sales. Find out how to pay VAT when you sell digital services to the EU.

Do you need to register for VAT in the country of supply?

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. A list of EU VAT contacts can be found in Notice 725. If the place of supply…

Does UK charge VAT to EU countries?