How to account for VAT from EU and non EU sales invoices

VAT on EU and non EU sales

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Help, I am trying to get to grips with how to account for VAT on foreign sales. Most of my Client’s sales invoices for non UK sales show TAX as ‘£0.00’. Does this mean that for an EU or non EU sale I am supposed to add 20% on top, or account for it as though it’s already included? Ie. The subtotal is £100 – so, should VAT be £16.67 (83.33+16.67) or £20 (100+20)?

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chips_at_mattersey
By Les Howard
27th Sep 2016 17:53

What is he selling?
Are his customers in the EU and outside the EU?
Are his customers in business? If so, have they provided VRNS, or other evidence of business status?

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Replying to leshoward:
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By Daybooks
27th Sep 2016 18:08

She's selling housewares to the EU and outside the EU. Her customers are 99% private individuals.

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Replying to leshoward:
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By Daybooks
27th Sep 2016 18:12

She's selling housewares to the EU and outside the EU. Her customers are 99% private individuals.

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Scalloway Castle
By scalloway
27th Sep 2016 18:16

For non business EU sales you need to account for VAT as normal, ie 20% of the net price.

For sales outwith the EU the payment received is zero rated.

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RLI
By lionofludesch
27th Sep 2016 18:38

The EU customers either give you a foreign VAT number or they should be charged at 20%.

So the answer to your question is the VAT is £16.67.

The non-EU customers pay no VAT - you just need proof of export.

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