UK based business selling digital services

Hi, I am based in the UK and own a small design agency (also registered in the UK). I am currently not registered for VAT as my turnover is way below the threshold. I am offering digital design services (website design, graphic design, design consultancy, illustrations) and my designs are personalized (so I assume they don't qualify as digital products such as ebooks). I have two questions: 1. I would like to know more about selling these services to the EU based business customers - who's responsible for VAT? Are there any other taxes or rules I should be aware of in this case? 2. Same question, but what about US based business customers? Anything I should be aware of? Kind regards, Maria

 

Hi. If you are supplying digital services to businesses overseas(within the EU and outside the EU) then these supplies will be Outside The Scope of VAT. Please see the guidance below: Place of supply of services (VAT Notice 741A)    . If the business customer is in the EU then the customer will account for the VAT under the reverse charge procedure It is always recommended to check with the country where the customer belongs to make sure there are n o other tax considerations in their country. Thank you .