Are you a UK-based business providing services to EU clients? Confused about VAT registration and compliance? 🤔 Don’t worry! Discover how the reverse charge mechanism works and what it means for your VAT obligations in our latest blog. From invoice requirements to VAT thresholds, we’ve got you covered.
Simplify VAT Compliance for Your EU Clients with These Key Insights
At Rustrick Accountants Limited, we’re dedicated to being your trusted experts for all things accounting and tax related. Our mission is to make VAT and tax compliance straightforward, so you can focus on what matters most growing your business.
VAT Registration and Compliance: Essential Tips for UK Businesses
If you’re a UK-based business providing services to clients across the EU, understanding your VAT obligations is crucial. Here’s what you need to know when dealing with EU clients:
B2B Services (Business-to-Business)
When providing services to an EU company (B2B), the reverse charge mechanism generally applies. Here’s how it works:
Outside the Scope Sales
It’s also important to note that sales to your EU clients are "outside the scope" of UK VAT, so they don’t count towards the £85,000 threshold for VAT registration. However, any other UK-based sales within the scope of VAT will contribute to this threshold.
Why Partner with Rustrick Accountants Limited?
Navigating VAT regulations can be complex, especially with cross-border transactions. That’s where we come in. At Rustrick Accountants Limited, we provide expert advice and hands-on support to ensure your business remains compliant without the stress.