When selling services to businesses in other countries, UK VAT generally isn’t applicable. VAT isn’t charged on your invoice, but your VAT return needs to include the value of the sale as part of your total (box 6 on the return). For services connected to land, catering, passenger transport or live performances, there are some exceptions to the general rule.
If your sale is to a VAT registered business in another EU country, it must be reported on your EC Sales list. However if your customer isn’t a business, or isn’t VAT registered, you shouldn’t include the sale. From 2015, the sales of various electronic services, telecoms or broadcasting to non-business customers could affect your VAT liability in the customer’s country.
You also don’t report the sale on the EC sales list if your customer is located outside of the EU, but your VAT return still needs the value of the sale adding to the declared total (box 6).
The distinctions are easy to mix up, so please do talk to us if you‘ve any doubts about reporting international sales.