Post-Brexit Invoicing: Selling Services and Goods to the EU

Brexit Changed Everything for EU Invoicing

Post-Brexit, the UK is now a third country for VAT purposes. The rules for invoicing EU clients are now different — and more complex.

B2B Services (Business to Business)

If you supply services to a VAT-registered business in the EU:

• You do NOT charge UK VAT
• The EU customer's country taxes it (reverse charge principle)
• Your invoice shows "0% VAT — place of supply: EU"

Example: UK Accountant Advising French Company

Smith & Associates Accountants
VAT Reg: GB 123 4567 89

Invoice to: Societe ABC, Paris
Invoice No: SA-0123
Date: 15 May 2026

Accountancy services (May 2026): £2,000
VAT: 0% — Place of supply is France (EU customer)
[Customer's VAT number: FR 12 345 678 901]
TOTAL: £2,000

The French customer's country will handle VAT if applicable.

B2C Services (Business to Consumer)

If you supply services to a non-VAT-registered EU consumer:

• You DO charge VAT — at the customer's country's rate (not UK 20%)
• You register for VAT in their country
• This is complex and expensive

For B2C services to EU consumers, most small businesses simply don't trade with them or require a VAT number first.

Selling Goods (Physical Products) to the EU

Post-Brexit, selling goods to the EU requires customs declarations:

• Goods under €150: Reduced customs duties, but paperwork required
• Goods over €150: Standard VAT and duties apply in destination country
• You need a commercial invoice for customs
• You may need to register for VAT in the customer's country

Key Documents for EU Invoicing

• VAT number — Must show your UK VAT number (GB...)
• Customer's VAT number — Request their EU VAT number to claim B2B status
• Proof of VAT number — Keep evidence they're VAT registered (VIES lookup)
• Commercial invoice — For goods shipments

Verification: Check if They're VAT Registered

Before invoicing an EU customer at 0% VAT (assuming B2B), verify their VAT number using the EU VIES lookup tool. If their VAT number is invalid, you must charge VAT.

Common Mistakes

• Invoicing EU consumers at 0% VAT (wrong — charge their country's rate)
• Not requesting a VAT number before invoicing B2B
• Forgetting to show "place of supply" on the invoice
• Not registering for VAT in the customer's country when required

Should You Trade with the EU?

Post-Brexit complexity has made many UK businesses reconsider EU trade. Key factors:

• VAT registration in multiple EU countries = cost and admin
• Customs paperwork for goods
• Currency risk (invoicing in EUR)
• Compliance with each country's regulations

For most small businesses, the overhead isn't worth it unless serving a major EU client.