VAT on sales to overseas customers
The difference between services and goods - explained
Whether you charge UK VAT to an overseas customer depends on what you sell and who the customer is. The default answers surprise most new exporters.
Services
Services supplied to business customers outside the UK are generally outside the scope of UK VAT: you invoice with no VAT and note the treatment on the invoice. Services to overseas consumers often still carry UK VAT, though important exceptions apply to digital and professional services. The customer's status and location decide it.
Goods
Exports of goods are usually zero rated, provided you hold proof of export and the goods leave the UK within the time limits. Zero rated is still a VAT rate: the sale goes on your VAT return.
💡 Good to know: Tell us before you invoice your first overseas customer. The right treatment depends on the detail, and correcting an invoice is easier than correcting a VAT return.
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