Non-domestic B2B services invoice requirements

Dear HMRC, I am reaching out to you in order to understand requirements for invoices that regard B2B services from a non-VAT registered UK seller to a VAT registered EU business buyer. As I understand, a non-VAT registered UK trader must not include VAT in their issued invoices. However, it seems that EU regulations demand that VAT reverse charge applies on any international B2B services. This requires at least stating the VAT-ID of the buyer and a 'reverse charge applies' note on the invoice - two components not usually included in non-VAT registered seller invoices. Could you please tell me the correct approach in this case? Does reverse charge apply for B2B services from a non-VAT registered UK seller to a VAT registered EU business buyer? Should in this case the invoice from the non-VAT registered UK seller include the VAT-ID of the buyer and a 'reverse charge applies' note? Many thanks in advance.

Hi,

If you are supplying certain services from the UK to a business in the EU then the the services would be outside the scope of UK VAT and would be accountable by the business there.
However as the UK is no longer in the EU and you are not VAT registered there is no requirement to state on the invoice that it is a reverse charge sale.

You can see see the guidance here:

Reverse charge

The place of supply rules for services

Thank you.

Hello, thank you for the reply. Do I understand correctly, that the EU B2B reserve charge regulation would apply and the EU buyer would be accountable for VAT - even when the UK seller is not VAT registered? Would you be able to further explain why there is no requirement to state that it is a reverse charge sale? Is this because the invoice regulations apply for the non-VAT UK seller apply for the international sale and not the general EU reverse charge invoice regulations? Could you also let me know if the EU business (buyer) VAT-ID is optional or must or must it not be stated in this case? Many thanks.

Hi

The B to B reverse charge regulation would apply if the UK supplier of services is not VAT registered and it would be the respondibility of the EU business customer to account for the VAT in their country using the reverse charge procedure.
The reason that a UK company would not need to state a reverse charge supply is because there is no requirement to do this as the UK is no longer part of the EU for VAT purposes.
It would be prudent to make a record of the business customer's VAT number or other evidence to show that your customer is in business and so justifying the need for the supply to be treated under the reverse charge mechanism.

Thank you