General Rule for VAT treatment on Goods & Services
This is for Standard rated vat registered business (not flat rate or exempt and excluding activities under special vat rules) in the UK if they deal in
VAT treatment when a UK business dealing with UK based clients
| Goods | B2C or Individuals Persons (non-vat registered) |
B2B (non-vat registered) | B2B (vat registered) |
| Sell to | Charge VAT | Charge VAT | Charge VAT |
| Buy from | No VAT | No VAT | Yes VAT reclaim |
| For Services (generally) | |||
| Provided by UK business | Charge VAT | Charge VAT | Charge VAT |
| Used by UK business | No VAT | No VAT | Yes VAT reclaim |
VAT treatment when a UK business dealing with EU based clients (old rules)
| Goods | B2C or Individuals Persons (non-vat registered) |
B2B (non-vat registered) | B2B (vat registered) |
| Sell to | Charge VAT | Charge VAT | Zero VAT, include in Box 6 and 8 and EC sales list |
| Buy from | No VAT | No VAT | Reverse Charge VAT Box 2,4,7 & 9 |
| For Services (generally) | |||
| Provided by UK business | Charge VAT | Zero VAT, include in Box 6 and mention reverse charge on invoices to the customers | Zero VAT, include in Box 6 and mention reverse charge on invoices to the customers |
| Used by UK business | No VAT | Reverse charge VAT Box 1,4 and 6 | Reverse charge VAT Box 1,4 and 6 |
VAT treatment when a UK business dealing with Outside EU clients
| Goods | B2C or Individuals Persons (non-vat registered) |
B2B (non-vat registered) | B2B (vat registered) |
| Sell to | Zero VAT, include in Box 6 | Zero VAT, include in Box 6 | Zero VAT, include in Box 6 |
| Buy from | No VAT | Reclaim VAT if at Port | Reclaim VAT if at Port |
| For Services (generally) | |||
| Provided by UK business | Zero VAT, include in Box 6 | Zero VAT, include in Box 6 | Zero VAT, include in Box 6 |
| Used by UK business | Reverse Charge VAT Box 1,4 and 6 | Reverse Charge VAT Box 1,4 and 6 | Reverse Charge VAT Box 1,4 and 6 |
