Sell services to EU consumers (GB & NI)
Description

Overview for businesses in GB and NI

When you sell services to an EU customer who is not VAT registered (an EU consumer), VAT is charged at either:

  • the UK rate (home VAT) if you're selling standalone services
  • at the rate of the country where your customer lives (destination VAT) if you're selling digital services
Cause
Resolution

On 1 July 2021, the EU introduced an optional One Stop Shop VAT scheme for the sale of digital services which attract destination VAT.

Instead of having to register and pay VAT in each country you sell to, you can choose to report and pay EU VAT on digital services through a single return using the One Stop Shop.

If you use the One Stop Shop you will need to charge destination VAT at point of sale.

For a list of services which attract destination VAT visit the European Commission website (opens in new tab) >.

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