VAT
Place of supply rules decide whether UK VAT applies. B2B services are usually outside the scope with the reverse charge; B2C and goods follow different rules.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityFor B2B services, the place of supply is usually where the customer belongs, so no UK VAT is charged and the customer accounts for it under the reverse charge. Exported goods are usually zero rated with proof of export. B2C rules vary by service type.
Services
Goods
For B2B services, the place of supply is usually where the customer belongs, so no UK VAT is charged and the customer accounts for it under the reverse charge. Exported goods are usually zero rated with proof of export. B2C rules vary by service type.
Under the general B2B rule you invoice without UK VAT, state that the reverse charge applies, and keep evidence the customer is in business, usually a VAT or tax registration number. The sale still appears in box 6 of your return.
B2C services to overseas consumers often remain UK VATable under the general rule, with exceptions for digital services, land, events, and certain professional services to non-UK consumers. The exception list matters more than the general rule for many small businesses.
Exports of goods out of the UK are zero rated provided you hold proof of export within the time limits, usually three months. Without evidence, HMRC treats the sale as standard rated and the VAT comes out of your margin.
Sales into the EU may create obligations in the destination country, including import VAT, IOSS for low value consignments and marketplace deemed supplier rules. Check the destination position before scaling, not after.
Rates, thresholds and deadlines quoted here reflect the 2026/27 UK position and current Companies House and HMRC guidance. Check GOV.UK, or ask us, before relying on them for your own company.
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We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
For EU B2B it is the standard evidence. For other countries, any credible evidence of business status can work, such as a tax registration or commercial contract.
A note that the supply is subject to the reverse charge and the customer must account for VAT.
Yes, Northern Ireland follows special rules for goods, so treat them separately from Great Britain.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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