What VAT rate to charge for intra-EU sales?
The standard rate of VAT is 23%. Any goods and services that don’t fall into one of the reduced rate categories are charged VAT at this rate. The reduced rate of VAT is 13.5%. This rate applies to tourism-related activities such as hotels, restaurants, cinemas, and hairdressing.
Do I charge VAT on sales to EU from UK?
VAT is a tax on goods used in the UK and you do not charge VAT if goods are exported from: Great Britain to a destination outside the UK. Northern Ireland to a destination outside the UK and EU .
Do I charge VAT to UK customers after Brexit?
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 I charge VAT to EU customers?
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.
Does EU reverse charge VAT still apply?
As of , the United Kingdom became a third country for VAT purposes, and the EU reverse charge rules for the supply of goods sent to/from the UK no longer applies. Companies instead should treat such transactions as exports or imports.
Is VAT charged on sales to EU countries?
For EU-based companies, VAT is chargeable on most sales and purchases of goods within the EU. In such cases, VAT is charged and due in the EU country where the goods are consumed by the final consumer. Likewise, VAT is charged on services at the time they are carried out in each EU country.
Do EU customers pay VAT after Brexit?
From , the main changes are that; UK retailers that want to import the goods into the member state of the customer and sell them to customers will have to register in the EU member state of the consumer, pay import VAT and charge local VAT.
How do I report VAT sales to EU?
How to complete an EC Sales List
- their 2 letter country code.
- their VAT registration number.
- the value of the goods and related costs – entering code ‘0’ (zero) in the indicator column – even if you have not invoiced them or been paid yet.
What is reverse charge VAT for EU?
What is the VAT Reverse Charge? When you buy goods or services from suppliers in other EU countries, the Reverse Charge moves the responsibility for the recording of a VAT transaction from the seller to the buyer for that good or service.
Are services to EU zero rated?
From the margin on designated travel services which take place inside the EU will be zero rated in line with the current treatment of supplies that take place outside the EU. The margin on those enjoyed in the UK will remain taxed at the standard rate.