United Kingdom: Overseas B2B Service Providers to Charge VAT from April 2027

• From April 2027, non-UK businesses supplying B2B services to non-VAT-registered UK traders will have to register for UK VAT and charge UK VAT where the UK is the place of supply.
• This introduces a new general place of supply rule for these services and departs from the current EU-style approach to VAT on B2B services.
• At present, UK businesses receiving services from non-UK suppliers generally self-account for VAT under the reverse charge, including some businesses below the VAT threshold or wholly exempt businesses.
• Under the new rule, the UK recipient will no longer trigger a VAT registration requirement; instead, the overseas supplier will have an immediate UK VAT registration obligation, with no registration threshold for overseas businesses.
• Once registered, the overseas supplier must file quarterly VAT returns and account for VAT under Making Tax Digital requirements.

Source: swgroup.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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