Cross-border VAT solutions for overseas transactions. Navigate complexity with ACG.
International VAT – Expert Guidance for Global Service Providers
Navigating VAT on international services is one of the most complex areas of VAT legislation. Whether you’re a UK-based business providing services abroad or working with foreign suppliers and clients, VAT obligations can be confusing, risky, and costly — if you don’t handle them correctly.
At Audit Consulting Group, we specialise in helping businesses understand and apply the rules around VAT on overseas services, VAT on services to overseas customers, and VAT on recharges to overseas customers. Our mission is to simplify the process, reduce your VAT exposure, and ensure full compliance — while unlocking savings and improving international trade efficiency.
Understanding VAT on Services to Overseas Customers
When supplying services internationally, one of the most common questions is: “Do I charge VAT on services to overseas customers?” The answer depends on various factors, including the nature of the service, the location of the client, and whether they are a business or consumer.
We help you:
- Determine the place of supply for your services
- Understand when the reverse charge applies
- Know when to charge UK VAT and when not to
- Avoid charging VAT unnecessarily — or failing to charge it when required
VAT on Overseas Services – Avoid Costly Errors
Incorrectly treating VAT on overseas services can result in penalties, loss of reputation, and additional tax liabilities. Common issues we help clients resolve include:
- Charging VAT incorrectly on exports of services
- Failing to meet HMRC documentation requirements
- Misunderstanding how VAT applies to consultancy, marketing, software, and digital services
Our team provides clear, practical advice tailored to your exact services and business model.
VAT on International Services – What You Need to Know
When selling services abroad, your VAT responsibilities change. Here’s a simplified breakdown:
- B2B Services: Generally, no UK VAT is charged. The customer accounts for VAT using the reverse charge.
- B2C Services: UK VAT is often applicable unless a special rule applies (e.g., digital services or land-related services).
- Special Services: Some international services, such as financial, legal, and consultancy services, may have exceptions.
With Audit Consulting Group, you won’t need to guess — we make sense of every rule and regulation.
VAT on Foreign Services – Selling and Buying Abroad
Whether you’re selling consulting services to a client in the EU or buying marketing support from the U.S., you need to account for VAT on foreign services properly.
We’ll help you:
- Treat foreign invoices correctly
- Apply the reverse charge mechanism
- Reclaim VAT where appropriate
- Avoid VAT leakage on intercompany or cross-border service chains
Our team works closely with accountants, CFOs, and business owners to keep international service VAT streamlined and efficient.
VAT on Recharges to Overseas Customers
Rebilling costs and expenses to foreign clients? You may need to apply different VAT rules than on your core services. VAT on recharges to overseas customers can get tricky — especially when it comes to disbursements vs. recharges.
We assist with:
- Reviewing contracts and billing structures
- Classifying recharges appropriately
- Applying or removing VAT as required
- Creating clear invoices for HMRC and client audits
Avoid mistakes and delays — let us review your international recharges before you submit VAT returns.
Why Choose Audit Consulting Group for International VAT?
We understand international VAT inside out. Businesses across the UK choose us because:
- We focus on practical, real-world compliance
- We know when and how to apply VAT on international services
- We tailor our advice to your exact services and customer base
- We handle the admin — you stay focused on growth
Whether you’re just entering global markets or scaling international operations, we’ll protect your business and bottom line.
Case Studies – Helping Businesses Thrive Internationally
Marketing Agency Expanding to the EU
A UK agency asked us whether to charge VAT on marketing services for EU-based business clients. We identified the correct place of supply and ensured the invoices followed the reverse charge rules — eliminating VAT risk and saving time.
SaaS Company Selling to US Customers
We helped a digital service provider assess whether to charge VAT on subscriptions for U.S. customers. Result: clear guidance, updated billing platform, and consistent VAT treatment.
Frequently Asked Questions (FAQ)
Do I charge VAT on services to overseas customers?
If the client is a business based outside the UK, you usually don’t charge VAT. If they’re a consumer, VAT may apply depending on the service type.
What is the reverse charge mechanism?
This is when the buyer, not the seller, accounts for the VAT. It often applies for B2B international services.
What if I get VAT invoices from overseas suppliers?
You may need to apply reverse charge rules in your VAT return. We’ll help you handle this correctly.
What about VAT on recharges to overseas customers?
Recharges may or may not attract VAT depending on their classification. We provide guidance based on your contracts and invoicing.
How do I avoid mistakes?
Let us audit your international invoicing, contracts, and VAT return structure. We’ll identify any risks and ensure full compliance.
Book Your International VAT Consultation Today
Global service delivery is exciting — but also full of tax risks. Don’t let VAT complexity slow down your growth or create HMRC issues.
Get expert help with:
- VAT on services to overseas customers
- VAT on international services and recharges
- VAT on foreign services
- International invoicing, filing, and documentation
Contact Audit Consulting Group today and let’s simplify your international VAT. We’ll help you stay compliant, confident, and in control.
