Post Brexit VAT - Supplying Services to EU Countries

[@jerryjulius6664]

Great thanks , how about selling products from UK to EU .. B2B and B2C

[@MR-tx7ig]

Hello, what if a uk business invoice us customer for services that are supplier in the uk? Should we charge vat?

[@michaelgreen5515]

Really helpful video. The graph very helpful.

[@caroljackson9274]

Thank you, your guides are really clear and helpful. Am I right in thinking that all Sales of services outside the UK, including sales to USA, etc, should be zero rated and only appear on VAT return box 6? And should the 'reverse charge' statement appear on all of these invoices, even those outside the EU?

[@XUSolutions]

They will be zero rated but I’m struggling to find confirmation about the ‘reverse charge wording’. I saw an invoice today that said ‘ you may need to reverse charge this’. It was from a big company, so I think we are all struggling to get 100% clarity.

[@gtv537]

Hi, thank you for the video. Is it still up to date in November 2021? What about selling services B2C into the UK from an EU country?

[@rondeco30]

Hi, do you have any information for a sole trader antique dealer non VAT registered importing from the EU?

[@CloudaccountsServices]

Hi, great video. So does the 'reverse charge' statement appear on the sales invoice for services to the EU? Apologies if you have answered this.

[@haltprintltd9423]

Great video! Stupid question alert. Should we invoice in GBP or EUR to an EU country from UK?

[@XUSolutions]

Totally depends on the agreement between you and your customer ( not a stupid question btw)

[@bradfitton6998]

Hi quick question, I understand that supplying freights services, B2B is Zero rated for VAT, do you know if the same rules apply to B2C under new rules? Thanks in anticipation.

[@olgakarunna4528]

Thanks for a video. If I have EU 0% services suppliers and normal20% UK - should I split by% input tax or no? As I use 20% and 0% rates

[@XUSolutions]

Yes you need to show the split of VAT rates

[@natalieg35]

Hello, very helpful info! could you please advise how to account VAT when supplying goods to EU countries? Thanks!

[@XUSolutions]

Usually zero rated if B2B, but check HMRC for your specific circumstances.

[@stechfreak]

Thanks for the simple explanation

[@XUSolutions]

Glad it was helpful!

[@RB-nz3ve]

Is it still applicable?

[@imhoman8423]

I want to export my motorcycle back to the continent. Im a private individual moving my asset from a non Eu country (UK) to an EU one. Do you know where should I look for the VAT charges and how to avoid paying them entirely? Or maybe how to trick the system into thinking my bike was a lot cheaper than it actually was?

[@lukroltd6419]

Hi Lisa, What about Supplying Services to USA? How would you create the invoice for this customer? Please advice

[@XUSolutions]

where's Lisa?

[@houseofsmocking]

Great video thanks but one question, I thought I only had to show vat for sales up to £135.00 when I sell sewing goods to European customers. As from 1/7/21 Do I show vat on the invoice regardless of the sale value? Any help would be brilliant.

[@XUSolutions]

I will do some new videos for the July changes

[@chriswade8133]

Many thanks for the video it is very helpful. Can you confirm that B2B is always zero rated no matter what the service? Digital services are included in the special rules but does this only apply to B2C? Many thanks

[@XUSolutions]

The rules for 'digital services' only apply when it's a business to consumer transaction. It's mentioned on HMRC website here www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers#businesses-established-outside-the-eu

[@XUSolutions]

On HMRC website following that link you will find this specific wording: "If you accept that your customer is in business, the supply does not come within the scope of these business-to-consumer arrangements. With a cross-border business-to-business supply the customer will be responsible for accounting for any VAT due to the tax authorities in their country." Hope that helps.

[@cathm1971]

I need to invoice a French company for services provided by a company (UK based and VAT registered). I understand it's a B2B situation and therefore in Xero it should be Zero Rated Income and need to have a line on invoice stating Reverse Charge Rules Apply. However how does the French Company know what level of tax they need to reverse charge for? Can you do a video of how you actually make the invoice in Xero please? Thanks, your videos really help!

[@XUSolutions]

It’s the French rate of tax, ie what they would normally pay if they purchased in France.

[@EvilGibbatron]

Brilliant…. Love it

[@khawajadanishaltaf1847]

Hi Ma'am, hope you are fine. Would you please do a video on Export of Goods to EU and rest of the World. Thank you!

[@bradfitton6998]

Thanks Marion, really helpful

[@trevorpeers5769]

Any answers to book keeper has posted three months sales to 312 March 2021 as EC Sales instead of Zero Sales - box 8 has this figure in. Can this be adjusted on VAT return?

[@trevorpeers5769]

* 31 March 2021*

[@XUSolutions]

I would use 'Find and Recode' in Xero to amend them

[@daisysimmonds6250]

Hello thank you for your videos I have found them really helpful. I have a question regarding specific vat codes for a sale of service in Xero. You mention you would zero rate the sale but add a note to the invoice saying ‘reverse charge applies’ ... in 2020 the Xero tax code Zero Rated EC Service could be used to reverse the charge. Please could you explain why we would now choose zero rated in 2021 rather than Zero Rated EC Service? Are we technically zero rating the sale in the UK to the EU and advising the other country to account for it under the reverse charge rather than reverse charging it on our VAT return? Many thanks Lisa

[@XUSolutions]

Hi Lisa, The 'reverse charge' VAT codes are used by the business responsible for applying the reverse charge. When you sell services B2B - it's your customer who is responsible, so you use the 'zero rated' code and they are responsible for the reverse charge. This is the same for 2020 and 2021. In 2020 I would use the 'Zero Rated EC Services' code only when I was responsible for the reverse charge.

[@daisysimmonds6250]

Thank you; that’s helpful. Please could you give an example of when you would use Zero Rated EC Services VAT code in Xero?

[@XUSolutions]

@@daisysimmonds6250 I don't think it will be used any more. But ... when I asked Xero to confirm which codes will be relevant in 2021 I never got a proper response.

[@galacticambitions1277]

Hi, Thank you for making this video. Do you know if in broad principle this works in reverse? I'm a Brit living in France hoping to sell services to UK businesses. Thank a lot.

[@XUSolutions]

You need to find the French expert

[@galacticambitions1277]

Thanks. I've since found out it is basically the same the other way too. B2B service exports between the UK and EU are the same now as they were before Brexit, more or less. You just mark the invoice differently (say that it's VAT exempt and don't bother swapping VAT numbers) and do the accounting differently (no reverse charge) but the end result is basically the same.

[@XUSolutions]

Thanks for letting me know. I was planning a further comment, but got sidetracked :-)

[@galacticambitions1277]

No worries! Took me about 24 hours of Internet research but I think that's right!

[@galacticambitions1277]

You are welcome :)

[@onurboran7191]

this was brilliant, thank you. :)

[@XUSolutions]

you’re welcome

[@mohammadaqib4019]

Thank You for sharing this information. Could you also share the video for XERO VAT (Post Brexit)?

[@XUSolutions]

If you check out the Brexit playlist you will see all the videos I have created, with more to follow.

[@mohammadaqib4019]

@@XUSolutions Thank you for the response. I'll follow it.

[@ali.s227]

I have a question Acquisitions of services like subcontracting and consulting from US should be treated as zero rated ?

[@XUSolutions]

this should be reverse charge

[@ali.s227]

@@XUSolutions Thanks

[@roshnijaiswal5434]

Thanks for this video, it’s really helpful. Thanks a million 😊

[@XUSolutions]

You’re welcome 😊

[@karteekk6905]

Thanks for nice explanation !!

[@XUSolutions]

You’re welcome

[@mohammadhossain7867]

great , I do no understand why we need to charge vat on b2 c customer in EU , we gonne loose 40 % of the selling price while we sell through ebay ,,, how we meant to be make money ?

[@XUSolutions]

I don’t make the rules 😊

[@webco-media]

Hi great video thanks! Really appreciate it :-)

[@XUSolutions]

You’re welcome