United Kingdom restricts VAT reverse charge for overseas services

• From April 2027, the VAT reverse charge for services supplied from overseas will apply only where the UK customer is VAT registered.
• If the UK business customer is not VAT registered, the overseas supplier must charge and account for UK VAT instead.
• The change may significantly affect overseas businesses supplying services to UK businesses outside the VAT registration net.
• Further detail is needed on how overseas suppliers will account for UK VAT and how the measure will interact with UK VAT registration rules.
• Legislation will be included in Finance Bill 2026-27.

Source: icaew.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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