VAT on EU Exports

If you sell goods to someone in the EU, you may need to charge them VAT depending on their circumstances. Here’s what to do in some of the common circumstances UK businesses find themselves in.

A Sale by a UK VAT Registered Business to someone who is also VAT registered in another EU Country

VAT treatment: Zero Rated Supply

UK VAT Reporting Requirements: 

  • your normal VAT Return in box 6 and box 8
  • the EC Sales List (ESL)
  • the Intrastat Supplementary Declaration, if you sell over £250,000 of goods to other EU customers in a year

Information to Keep

A sale between two businesses that are both VAT registered can be zero rated as long as the following you must disclose and gather together the following information:

  • The customers VAT registration number (including their 2 letter country code)
  • Keep evidence of the export (things like the order details, packing list, consignment notes)
  • Detail on your invoice/paperwork all the following:
    • your business details
    • your customer’s details
    • a detailed description of the goods and their value
    • the method of transport and route
    • where the goods are going to

Whether you choose to despatch the goods by post, courier or air you must keep all the evidence of the sale for 6 years, including any airway bills and dispatch packs issued by Royal Mail.

Next: VAT on Sales by a UK VAT Registered Business to someone who is NOT VAT Registered in another EU Country >>

Anita is a Chartered Accountant, turned blogger and creator of the ever popular free Go Self Employed Email Mini Course, which has been completed by hundreds of attendees all over the UK. Using her 10 years experience in accounting, tax and operations for Small Businesses, Anita is on a mission to make finance simple for the self employed, so they can stop stressing about tax & finances and focus on building profitable businesses which will give them the lifestyle they dream of.