UK VAT is no longer chargeable on goods shipped to EU customers. It may however be necessary for UK suppliers to register for EU VAT, although this might not be a requirement for some businesses selling through online marketplaces.
The VAT rules for online services are complex and although UK businesses are often liable to pay UK VAT on services provided to EU consumers, it is also possible that an EU VAT registration will be required. It is no longer possible to account for EU VAT via an HMRC portal, although there is now an EU ‘One Stop Shop’ VAT registration process available to UK businesses. We can help you understand the rules and meet compliance requirements as appropriate.
Retailers/online sellers regularly use promotions to attract customers, and there may be opportunities to make VAT adjustments where discounts, vouchers, or other promotions are used. It may also be possible to obtain retrospective VAT refunds where adjustments have not been previously made.
Our client operated as an online seller specialising in books, guides, and maps. Due to their sales to EU consumers and the typically low value of their consignments, they found themselves obligated to register for VAT within the EU.
While many of their products were zero-rated in the UK, such as books, VAT applied to these items in numerous EU countries.
We advised our client on how to obtain a One Stop Shop EU VAT registration number and confirmed the VAT rate that applied to their products in each EU country that they sold into.
The client was able to plan and ensure that their pricing recognised the additional VAT charge that would apply in many EU countries.
Our client was a provider of online music streaming services, with a focus on the broadcast of DJ sets and ‘educational sessions’.
Because the client provided a mix of live content and pre recorded content, the VAT position wasn’t as straightforward as it might have been, and the client was concerned that they would have the liability to register for VAT in multiple jurisdictions.
We reviewed the client’s service offering and advised them on how VAT would apply in the UK, the EU and elsewhere.
The client was able to move forward with its business in the knowledge that it was only liable to register for VAT in the UK and the EU (via a One Stop Shop VAT registration)
Our client was a provider of online music streaming services, with a focus on the broadcast of DJ sets and ‘educational sessions’.
The client did not keep a proper record of redemptions, the risk was that the client accounted for more VAT than they needed!
We examined the voucher issuance and redemption process and helped the client pinpoint transactions where no VAT adjustment had been made, even though a voucher had been redeemed (so the full price was not ultimately paid).
As a result the client made a claim to HMRC for a refund of the VAT that they had overpaid.
Possibly. Since Brexit, UK sellers shipping goods to EU customers may need to register for VAT in one or more EU countries, especially if not selling through a marketplace that handles VAT for you. We can help determine whether registration is necessary and guide you through the process.
The OSS is a simplified VAT scheme that allows UK businesses selling digital services to EU consumers to report and pay EU VAT through a single EU member state. If you're eligible, we can assist you in registering and filing through the OSS.
Not necessarily. The VAT treatment depends on whether your customer is a business or consumer and where they’re located. In some cases, EU VAT rules apply, and you may need to register there. We help clarify your obligations and keep you compliant.
Cross-border digital content sales often require VAT registration in other countries. You may need OSS registration to handle this more easily. We’ll help you identify where VAT applies and support you with registration and filing requirements.
Yes, in some cases. If your promotional activity involved a price reduction through vouchers or discounts, and you overaccounted for VAT, we can help you make retrospective adjustments and potentially recover overpaid VAT.
Yes. Physical goods sold to EU customers involve distance selling and shipping rules, while digital services often require OSS registration. Each has its own VAT treatment, our advice ensures you apply the correct rules for each category.
Yes. Even low-cost items can trigger VAT obligations in the EU or other jurisdictions, especially when thresholds are exceeded. We help you navigate these rules, so you don’t fall foul of the requirements.
