Sell services to an overseas business (UK)

Overview for businesses in the UK

When you sell services to a VAT registered business in a different country, VAT is zero rated.

Create a sales invoice

  1. Go to Sales, Sales Invoices, and select New Invoice.

  2. In the Customer field, select your overseas customer from the list, or type the customer name. If the customer is not a saved contact, select Add a customer to create a record for them.

    Make sure each customer has the correct country set on their address and a VAT registration number where applicable.

  3. On the first invoice line, select a service from the list, or start typing its name to find it. If the service is not a saved item, enter a description for the item or select Create item to create a record for it.

  4. In Goods/Services select Services (standalone). The VAT will be zero rated and cannot be edited.

    Repeat on a new line for as many items as you need to add to your invoice.

  5. Select Save.

The VAT return

Sales of services are reported in Box 6 - total value of sales and all other outputs excluding any VAT.

The VAT on sales is zero rated so there is no VAT value recorded on the return.