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What applies to your sales to EU customers?
A general guide based on HMRC Notices 703, 741A and 700/12. EU rules are set by each member state.
What the EU VAT SME scheme is
- A scheme for small businesses established in an EU member state.
- It lets them use another member state's small business VAT exemption, so they do not charge VAT or register there, if their total EU turnover is no more than €100,000 and they meet that country's own threshold.
- Businesses notify their own member state once and file quarterly turnover reports there.
Why UK businesses cannot use it
The scheme is only for businesses established in an EU member state. Since Brexit, a business established in the UK is outside the EU, and appointing a tax representative in an EU country does not make it eligible. UK sellers follow the normal rules for each type of sale.
What applies when you sell to EU customers
| What you sell | UK VAT return | EU VAT |
|---|---|---|
| Goods sent from Great Britain to EU customers | Zero-rated export with evidence: net sale in Box 6 | Import VAT is due in the EU. For parcels up to €150 to consumers, you can collect it at checkout through the EU's Import One Stop Shop, using an EU intermediary |
| Services to EU business customers | Usually outside the scope of UK VAT: net sale in Box 6 | The business customer usually accounts for VAT under the reverse charge |
| Digital services to EU consumers | Outside the scope of UK VAT: net sale in Box 6 | EU VAT is due from the first sale, usually through the non-Union One Stop Shop |
Rules differ for businesses in Northern Ireland selling goods to the EU, and for some other services. For digital services, see VAT on digital services for UK sellers.
Keeping your UK VAT return right
- Include EU sales in Box 6, with no VAT in Box 1 where they are zero-rated or outside the scope of UK VAT.
- Keep export evidence for every zero-rated sale of goods.
- Do not use Box 8 for sales from Great Britain. It is only for goods from Northern Ireland to the EU.
- Keep your EU VAT filings, such as One Stop Shop returns, separate from your UK VAT return.
Get the UK side right, from £5 a month
Exports and EU services go in Box 6. Keep them in your spreadsheet, upload the nine box totals and file.
- Connect to HMRC on HMRC's own page with your Government Gateway sign-in. We never see that password.
- See your VAT periods, due dates, amounts owed and payments, read from HMRC.
- Upload your nine box totals as a CSV. Box 3 and Box 5 are worked out and every box is checked.
- Submit and keep HMRC's receipt. Reminder emails arrive before each due date.
No card needed · From £5 a month · Plans for up to 100 businesses · Filing through HMRC's MTD service since 2019
Final thoughts
The EU SME scheme does not help UK businesses. What matters is getting each EU sale right on your UK VAT return, and knowing when EU VAT is due on the other side.
Disclaimer: This guide gives general information, not advice. EU VAT rules are set by each member state. Speak to an adviser for your EU obligations.
Frequently asked questions
Checked against European Commission guidance on the VAT SME scheme, and HMRC VAT Notices 703, 741A and 700/12. November 2026.
What is the EU VAT SME scheme?
Can UK businesses use the EU VAT SME scheme?
Do I charge UK VAT on goods sent to EU customers?
Do I charge UK VAT on services to EU businesses?
Do I need to register for EU VAT for digital services?
Get the UK side right, from £5 a month.
Swift VAT Pro files your return to HMRC from the spreadsheet you already keep. From £5 a month.
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