UK Businesses that sell goods & services within the EU strictly speaking are not ‘exporting’ but sending ‘dispatches’. This affects the rate the UK supplier has to charge VAT on supplies to a EU Country as follows;

  • If the buyer in the other EU state is not registered for VAT in that state, the UK supplier must charge VAT at normal UK rates for the goods or services supplied.

 

  • If the buyer in the other EU state is registered for VAT in that state, the UK suppler can normally zero rate the VAT charged. However a business can only zero rate the VAT if the registration number of the buyer (including the two letter country code) is shown on the EU customer invoice.

 

For example a VAT registered UK company supplies goods or services
to a VAT registered buyer in Ireland.

The Invoice issued by the UK company must show the suppliers VAT registration number prefixed by GB, and it must also show the buyers ‘Customer Intracommunity VAT Number’ (The buyers VAT Registration Number), prefixed by IE.

 

 

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