Whilst we are still part of the EU VAT registered businesses which supply goods to a customer in a EU country must charge VAT at the standard UK rate. However if that customer is VAT registered, as long as they provide you with their VAT number you can zero rate the supply. The customer's VAT number must be recorded on the invoice you provide to them.
When you zero rate supplies to an EU customer the value of the sale to each customer must be declared on a quarterly EC Sales List. You will need the VAT number of the customer to be able to complete this form.
EC Sales Lists are submitted online to HMRC every quarter. These quarters are not necessarily the same quarters as your VAT return periods. EC Sales Lists are due for the quarters ending March, June, September and December and are due for submission by the 19th of the month following the end of the quarter.
Supplies of services in the UK to EU business customers must be charged at the standard rate of UK VAT and are therefore declared with other sales on your VAT return. Supplies of services in an EU country may need to be charged at the rate of VAT in the country of supply. Further information about this can be found on the HMRC website.
There is a limit to the value of goods you can sell to one EU country within a 12 month period before you have to become VAT registered in that country. This threshold is approximately 35,000 euros but varies from country to country.
