Although you will not need to charge UK VAT (as your goods will not be consumed in the UK), you may need to account for import VAT to the country you are shipping to. This now includes countries within the European Union.

Is VAT applicable between EU countries?

When is VAT charged? 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. VAT isn’t charged on exports of goods to countries outside the EU.

Are EU countries exempt from VAT?

At the moment, for EU transactions, VAT is generally not charged on the supply of goods between businesses from another European country by the supplier. Instead, a business recipient is generally required to charge itself VAT, known as acquisition VAT, which is typically an accounting transaction on the VAT return.

Should you charge VAT on shipping?

Postal services provided by the Royal Mail Group Limited under its remit as the universal postal service provider in the UK are exempt from VAT if they’re subject to price and regulatory control.

Which EU country has the lowest VAT rate?

Luxembourg
Luxembourg levies the lowest standard VAT rate at 17 percent, followed by Malta (18 percent), and Cyprus, Germany, and Romania (all at 19 percent). The EU’s average standard VAT rate is 21 percent, six percentage-points higher than the minimum standard VAT rate required by EU regulation.

Do I charge VAT to EU customers 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 you have to show VAT number when sending goods abroad?

If you’re sending goods to someone who is VAT-registered in a destination EU country, you can zero rate the supply for VAT purposes, as long as: you get their VAT registration number, including the 2 letter country code, and show it on your sales invoice

Do you pay VAT if place of supply is in another country?

If you’re in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules. If you’re in the UK and the place of supply of your service is in another EU country, you do not pay UK VAT. But for some supplies, you may need to register and account for VAT in the country of supply.

Do you have to pay VAT on goods exported to the Channel Islands?

HMRC can ask to see it and if we think it’s unsatisfactory you may have to pay VAT on the goods or services you sold. If you cannot get this evidence in time you must account for VAT on your return. Excise goods or goods subject to customs control exported to the Channel Islands need a Single Administrative Document ( SAD) declaration on form C88.

When to use VAT on taxable goods and services?

When VAT is charged on goods or services the term ‘taxable supplies’ may be used. If you are in business and you supply goods or services, you normally have to: