The information on this page is for general guidance only and should not be taken as definitive VAT advice, since individual circumstances may vary. For details of your obligations on sales of goods abroad, please refer to HMRC guidance.
The following applies to sales of goods (not services) from VAT registered businesses in GB or 'Great Britain' (i.e. the United Kingdom excluding Northern Ireland) to EU customers on or after 1 January 2021. For businesses trading in Northern Ireland please refer to Sale of goods to the EU (from NI only).
Sales of goods from GB to the EU
•This type of sale is classed as an 'export' for UK VAT purposes, as is already the case for sales of goods to the rest of the world.
•Exports of goods are also generally zero-rated for UK VAT, subject to certain conditions; if conditions are not met, UK VAT is due.
•You may have a liability to VAT in the country(s) of the EU customer(s), subject to certain sales thresholds and conditions.
•If you have a liability to VAT in an EU country, the VAT return cannot be done in VT Transaction+, however you can account for the VAT due and run reports to provide information needed for the VAT return; please refer to VAT due in other countries.
•EC Sales List is no longer required.
•Box 8 of the UK VAT return is no longer applicable as it is for intra-EU sales of goods (and sales of goods from Northern Ireland to the EU).
If the conditions are met for zero-rating of UK VAT, you can zero-rate exports (to the EU and the rest of the world) as follows:
If you raise sales invoices using the SIN function:
•Set up the product as zero-rated:
oselect Set Up>Invoices>Products and Services
oSelect the product and click on Properties (or create a new product) and then select Zero rate from the VAT rate drop-down.
If you enter sales using the SIN or REC functions:
•In the Output VAT field in the transaction dialog, either:
oEnter 0, or;
oselect No VAT from the list, or;
oCreate a 0% VAT rate for the list by selecting Set Up>VAT>VAT rates, increasing the number of VAT rates in the Number of VAT Rates drop-down and entering 0 for the new rate.
This will ensure that no VAT is included in Box 1 when you run the VAT return.
The net value of exports is required to be included in Box 6 of the VAT return. The process above will ensure that this is included in Box 6 when you generate the VAT return. Box 8 is for intra-EU sales of goods (and sales of goods from Northern Ireland to the EU) so will no longer apply for sales of goods from GB to EU customers.