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Flat rate scheme and european sales

Flat rate scheme and european sales


Quick VAT question:

HMRC's website states the following:

"Your flat rate turnover is all the supplies your business makes including all: sales to other EU countries"

"Don't include: non-business income and any supplies outside the scope of UK VAT"

"Services which, under the place of supply rules, are supplied in another country are outside the scope of UK VAT."

So if a client is on the flat rate scheme and they sell services to a business in Europe should they charge that sale to FRS VAT? And if so, why?


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20th Nov 2011 18:42


More detailed guidance is given in VAT Notice 733.

Sale of goods to other EU countries is included in the FRS turnover, but sales of services are not, provided that they are services of the type to which the normal B2B rule applies of being supplied in the country where the customer belongs and are therefore outside the scope of UK VAT.

Thanks (1)
21st Nov 2011 19:12

Thanks, Euan!

I'm pretty sure what you have said is corrrect because in the past when I have phoned CCH I have been told to exclude European sales from FRS turnover when dealing with service sector clients; however I started getting confused when I actually decided to read the HMRC website.

It's a pity the HMRC website isn't clearer on this issue.

Thanks again

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21st Nov 2011 19:22


I have just read the link and the HMRC website actually clearly states: "sells services to other Member States of the EU; if your supplies are outside the scope of VAT, leave them out of your flat rate turnover. This will depend on the place of supply of the services - see Notice 741 Place of supply of services".





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By 0648629
to justsotax
02nd Jan 2015 16:15

FRS & EU services

In that case if the supplies are within the scope of VAT, they should be included in the flat rate turnover. 

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26th Feb 2015 08:31


Very helpful lady at VAT helpline,  Services that are reverse charged are not included on FRS VAT Notice 733 section 6.4 makes it very clear

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