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VAT on digital services: UK ↔ EU (quick guide + checker)

VAT rules for digital services can feel confusing because the answer depends on where the customer is and whether it’s B2B vs B2C. This page gives a practical starting point and what to check next.

Quick checker

This checker is a “routing tool”: it points you to the likely VAT treatment and the next step to verify. It does not replace HMRC guidance or professional advice.

Where is the seller/business established? Where is the customer located?

Customer type

Is the customer a business (B2B) or consumer (B2C)?

What are you selling?

Type of “digital service”

Note: “Digital services” VAT treatment can differ for electronically supplied services vs a normal service delivered online (e.g. 1:1 consulting). If you choose “live service”, we’ll nudge you to verify.

VAT registration status

Are you VAT registered in the UK (if UK seller) / in your country (if EU seller)?

Likely VAT route

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Next Steps

Common “gotchas”

B2C EU digital sales often trigger “VAT due where the customer is”. This can mean OSS/non-Union OSS or local registration depending on setup.
B2B often depends on customer VAT number and evidence of business status.
Marketplaces (app stores, platforms) can change who is treated as the supplier for VAT purposes.
“Live services” delivered online may not be classed as electronically supplied services — verify the place-of-supply rules.

General information only. Not tax/legal advice. Always verify with HMRC and/or your local tax authority.

Quick mental model

Step 1: Is it B2B or B2C?
Step 2: Where is the customer?
Step 3: Is it an electronically supplied service (ESS) or a “normal” service delivered online?
Step 4: If VAT is due abroad, do you need OSS / local registration / a platform handles VAT?