If I am VAT registered, do I need to charge VAT on goods sold B2B to another EU country?
No, B2B sales to other member states are zero rated, you will have to indicate the VAT number of your customer, use the obligatory phrase on the invoice stating ‘intra-EU despatch of goods – customer accounts for the VAT’ and keep a proof of delivery.
This question was asked as part of our ‘VAT overseas’ webinar which we ran with SimplyVAT:
SimplyVAT aims to make cross border trading compliance simple. We help ecommerce sellers from all sales channels register for VAT and comply in all 28 EU countries as well as Canada.
Our ethos is to help businesses grow and sustain their ecommerce channels by educating them about their international VAT compliance obligations.
The Institute’s new series of Bitesize Chunks, in partnership with Simply VAT, take you through everything you need to know about VAT overseas:
- Module One: International VAT
- Module Two: International VAT Rules for the Supply of Goods
- Module Three: International VAT Rules for the Supply of Services
- Module Four: International VAT Recovery Rules in EU Member States
Buy any of the first three modules and get Module Four FREE!