Invoicing an Overseas Customer - VAT or No VAT?

I’m VAT registered and will be invoicing an overseas customer. Presumably, there is no need for me to charge VAT?

VAT is far more complicated than that! Charging VAT or not depends on various things:

• Are you invoicing for goods or for services?
• Where is your customer based? UK, EU, outside the EU?
• Is your customer a business or a consumer?

 The answers will dictate whether your sale is:

1. Standard rated (i.e. 20% VAT must be charged)
2. Zero rated (i.e. 0% VAT)
3. Exempt (no VAT)
4. Outside the scope of VAT

It is imperative that you get it right. Also, in some circumstances, it may be necessary to register for VAT in the country where your customer resides.

Most importantly – you must seek advice!

If you'd like to seek advice please contact AMS Accountancy on 01793 818400 or via email.

Written by Peter Bromiley ACA, AMS Accountancy Ltd.