Are supplies to overseas zero-rated or exempt?

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I know this must have been asked a lot - and trust me, I have read a lot, but still struggling to get my head round this - I keep getting different answers and interpretations. I just need two things clarifying.

1) If I am a UK VAT registered company and I supply services to the USA, or any country outside the EU - I know that this is out of the scope of VAT, but what is the definition of out of the scope? Is it zero rated or exempt for the purpose of SAGE/Xero? Do I still need to include the service in box 6?

2) If I providing services to EU countries - they are Zero rated and the reverse charge applies. Do I still fill in a EC Sales list for services?  

Is my understanding correct?

Thanks

Replies (6)

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chips_at_mattersey
By Les Howard
21st Apr 2017 16:47

Q1 - Outside the scope services are neither zero rated, nor exempt. But they do need to be included in Box 6 and input tax is recoverable.
Q2 - yes, you need to complete an EC Sales List for Reverse Charge services made to EU customers.

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Replying to leshoward:
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By Balboa120
21st Apr 2017 17:05

But if you were posting on SAGE, which code would you use? I assume T0 as you want it to appear in box 6?

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By Ruddles
21st Apr 2017 16:59

Your question is confusing - it refers to supplies FROM abroad.

Thanks (1)
Replying to Ruddles:
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By Balboa120
21st Apr 2017 17:04

Thanks, you're right - updated

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boxfile
By spilly
22nd Apr 2017 00:49

T0 on Sage.

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Caroline
By accountantccole
22nd Apr 2017 14:40

T22 for EC sales of services where you have their VAT number (B2B) is what my SAGE 50 notes say

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