Overview for businesses in the UK

When you sell services to a VAT registered business in a different country, VAT is zero rated. This includes sales of services made to the EU and the rest of the world.

Sales of servicesmade within the UK, such as between Great Britain and Northern Ireland, are classed as a home sale.

1. Go to Sales, Sales Invoices, and select New Invoice.
2. In the Customer field, select your overseas customer from the list, or type the customer name. If the customer is not a saved contact, select Add a customer to create a record for them.
   Make sure each customer has the correct country set on their address and a VAT registration number where applicable.
3. On the first invoice line, select a service from the list, or start typing its name to find it. If the service is not a saved item, enter a description for the item or select Create item to create a record for it.
4. In Goods/Services select Services (standalone). The VAT will be zero rated and cannot be edited.
5. Repeat on a new line for as many items as you need to add to your invoice.
6. Select Save.

The VAT return

The VAT on sales is zero rated so there is no VAT value recorded on the return.

If the business uses the flat rate VAT scheme, it will also only affect Box 6 – the total value of sales and all other outputs excluding any VAT.

Return to invoicing overseas from Great Britain

Return to invoicing overseas from Northern Ireland