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