I run a flat-rate VAT-registered UK limited company. Do I charge non-EU customers VAT on an invoice?

The sale of goods to a non-EU customer is not liable to VAT subject to certain conditions being satisfied. These conditions are detailed in the HMRC Public Notice 703 – Export of goods from the United Kingdom. Such supplies are deemed to be outside the scope of UK VAT and should not be counted as part of your flat rate turnover (please see HMRC Public Notice 733 – Flat Rate Scheme for Small Businesses).

The supply of services is much more complex and whether VAT is charged depends on where the “place of supply” of the service is deemed to be. Certain services such as the provision of hotel accommodation, estate agents fees relating to a specific property purchase in the UK, tickets to a theatre performance are all deemed to take place in the UK and VAT should be charged to the none-EU customer. Other types of services such as consultancy, translations services, testing and analysis, research are all deemed to be performed where the Customer is based and VAT should not be charged.

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