Post-Brexit, UK freelancers supplying services to EU customers (B2B) generally do not charge UK VAT. The customer accounts for VAT in their own country via the reverse charge mechanism. For B2C sales (selling to individuals), you charge VAT at the rate of the customer's country, and you must register for VAT in that country (or use the OSS scheme).
The post-Brexit change
Before 1 January 2021, UK businesses treated EU sales the same as domestic UK sales — you charged UK VAT, and the customer reclaimed it via the EU VAT refund system. After Brexit, the UK is outside the EU VAT system entirely. The rules changed.
The B2B rule (most common case)
When you invoice a VAT-registered business in the EU for a service: you do NOT charge UK VAT; the invoice should include the customer's EU VAT number; the invoice should include a note saying "Reverse charge — customer to account for VAT in their country"; the customer self-accounts for VAT in their country at their local rate.
A worked example
You invoice an Italian VAT-registered design agency for £5,000 of design services. The invoice shows: net amount £5,000.00, VAT reverse charge, total due £5,000.00 GBP, with a note "VAT is to be reverse-charged by the customer under Article 196 of Council Directive 2006/112/EC". The customer pays £5,000 (no VAT).
The B2C rule
If you sell to an individual (not a VAT-registered business) in the EU, you need to charge VAT at the rate of the customer's country. To do this, you must either register for VAT in each EU country you sell to, or use the One Stop Shop (OSS) — a single EU VAT registration that lets you collect VAT at the appropriate rate for each EU country and submit one quarterly return.
How to verify your customer's EU VAT number
Before you zero-rate an invoice, verify your customer's EU VAT number using the VIES VAT number validation tool at ec.europa.eu/taxation_customs/vies. VIES confirms the number is valid and matches the company name you have on file.
Frequently asked
Do I charge UK VAT on invoices to EU businesses post-Brexit?
No. For B2B services, you do not charge UK VAT. The customer self-accounts for VAT in their own country via the reverse charge mechanism. The invoice should include their EU VAT number and a reverse charge note.
How do I verify an EU customer's VAT number?
Use the VIES VAT number validation tool at ec.europa.eu/taxation_customs/vies. VIES confirms the number is valid and matches the company name you have on file.
What if my EU customer is not VAT-registered?
You must charge UK VAT. The reverse charge only applies to VAT-registered customers.
Written by Invosi Editorial · Tax & Compliance.