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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.

£0EU threshold for UK sellers
£0UK threshold for non-UK sellers
£90,000UK threshold for UK sellers
Last updated

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.

Customer type

What are you selling?

“Digital services” VAT treatment can differ for electronically supplied services vs a normal service delivered online (e.g. 1:1 consulting).

VAT registration status

Your likely VAT route shows here.Answer the questions and press Check. After that, it updates as you change any answer.
Updates as you change answers
Likely VAT route
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Next steps

    Common “gotchas”

    • B2C EU digital sales are taxed where the customer is. UK sellers have no EU threshold, so this applies from the first sale.
    • B2B often depends on the customer’s 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, so 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

    1. B2B or B2C? Business customers usually account for VAT themselves (reverse charge). Consumers don’t.
    2. Where is the customer? For digital services to consumers, VAT is due in the customer’s country.
    3. Is it an electronically supplied service (ESS), delivered automatically with little human input, or a “normal” service delivered online?
    4. If VAT is due abroad, does a platform handle it, or do you need the non-Union OSS scheme or a local registration?

    Thresholds at a glance

    Who sells to whomThreshold
    UK business to UK customersRegister once UK taxable turnover goes over £90,000 in 12 months
    UK business to EU consumers (digital services)No threshold: EU VAT is due from the first sale, usually through the non-Union OSS scheme
    EU or other non-UK business to UK consumersNo threshold: register for UK VAT from the first sale, unless a platform accounts for it
    EU business to consumers in other EU countries€10,000 a year EU-wide before the customer’s country VAT applies

    FAQ

    Do UK businesses need to charge EU VAT on digital services?

    When selling digital services to consumers in the EU, yes. VAT is due in the customer’s country from the first sale, because the €10,000 threshold only applies to businesses established in the EU. Most UK sellers use the non-Union OSS scheme in one EU country, or sell through a platform that handles VAT.

    Do I charge VAT to an EU business customer?

    Usually not. For most business-to-business services the customer accounts for VAT in their own country under the reverse charge. Keep evidence they’re a business, such as a valid VAT number.

    Is a live online class an electronically supplied service?

    Usually not. Services that need real human input at the time, such as live tutoring or consulting by video call, are generally treated as ordinary services, which can have different place-of-supply rules.

    Useful links