Correct Vat Code for Sales of Services to Non Vat Registered Customer from EC

Jo Legg
Jo Legg Registered Posts: 20 Dedicated contributor 🦉

I need to post a sales invoice for web design services to non vat registered client from ec.

HMRC tell me it needs to be included in box 6 of vat return but not box 8 but my accountants tell me it should be posted as T9 (outside scope of vat) which I dont think goes on vat return??

Help please!


  • mike1983
    mike1983 Registered Posts: 48 Regular contributor ⭐
    Good Morning,

    VAT element in box 2, net element in box 8.

    If you sell goods or services to someone who isn't VAT registered in another EU country, you must charge VAT in the normal way - just as you would for a UK customer.

    Check the link below for further information.

    Good Luck :001_smile:
  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️

    Outside the scope (assuming it is a business to business supply).
  • Jo Legg
    Jo Legg Registered Posts: 20 Dedicated contributor 🦉
    Great thanks!
  • reader
    reader Registered Posts: 1,037 Beyond epic contributor 🧙‍♂️
    I agree with Dean, assuming that the EC customer is a business (this can be verified through business letterheads, certificates from fiscal authorities, other commercial documents indicating the nature of the customer's activities, etc.), the VAT should be accounted for in the customer's country, i.e. outside the scope of UK VAT.

    I think on the sales invoice you should state that "This invoice is subject to reverse charge" and when your non-VAT registered business customer receives the invoice they can ignore this quote as they are not VAT registered.

    I think you do not have to do an ECSL for this supply as you do not have a VAT regsitration number; an ECSL is essentially a monthly return HMRC require VAT-registered businesses to submit if they supplies goods and certain services to VAT-registered customers in another European Union (EU) country.
  • stefanboro
    stefanboro Registered Posts: 187 Dedicated contributor 🦉
    Very quickly....

    It would NOT go on box 8 because it's a service to the EC rather then a supply of goods.

    Payment would only be subject to the reverse charge if the EC based client has a valid VAT number that you have verified here:

    However, even without the reverse charge you do not need to charge VAT if you are satisfied that the EC customer is a business - here is some guidance on the crtieria:

    Assuming the customer IS VAT registered you would then have to complete an ECSL - a paper version can be found here:

    For the "indicator" column you select "3" if you supplied SERVICES to the customer instead of goods.

    Then there are special rules for events etc - which are not under the general rule. I have to explain this to the accounts departments of some of the biggest companies in the world why they are being charged VAT on an event within the UK but not on an event in The Netherlands! It's never easy.

    In this case you don't need to worry about any of this. It's a B2B service supply where the customer is not VAT registered. Box 6 and no VAT.
  • mike1983
    mike1983 Registered Posts: 48 Regular contributor ⭐
    Sorry, didn't realise it was business to business! Although it said client and it is a website so must be a business :laugh:

    I really should read through twice before diving in!
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