Do I need international VAT advice?

VAT is an international tax and has been adopted in some form or another across much of the world. Increasingly local tax authorities are looking at VAT as a much-needed revenue source and at government level are moving to VAT being declared and paid VAT to be declared and paid in the customer’s jurisdiction.

This means that for certain supplies, VAT registration across multiple jurisdictions is becoming increasingly necessary, and the requirement to register will increase as the focus continues to be on VAT being declared and paid locally.

Gerald Edelman has recently introduced an international VAT offering to meet the demands of businesses that need solutions to cross-border issues. In this article, we share what international VAT involves, when a business might seek advice and the main challenges businesses face.

What is international VAT?

International VAT refers to the VAT implications of any activity occurring outside the UK. This can be straightforward, such as recognising when UK VAT should not be charged or far more involved, including VAT registration requirements in multiple countries.

Common scenarios where international VAT applies include:

• Cross‑border sales of goods.
• Cross‑border supplies of services.
• Digital services and platform-based sales.
• Holding stock in overseas warehouses or fulfilment centres.

If your business operates internationally in any capacity, VAT obligations are likely to follow.

Why would a business need international VAT advice?

If you plan to sell goods or services outside the UK, international VAT advice is not optional, it’s essential. Advice may be as simple as confirming that exported goods can be zero‑rated, or as complex as managing multi‑jurisdiction VAT registrations or navigating schemes such as the Import One Stop Shop (IOSS).

Some of the areas where your business may need support include:

• Ensuring correct VAT treatment on cross‑border supplies.
• Managing multiple VAT regimes simultaneously.
• Understanding place of supply rules.
• Overcoming challenges with overseas VAT recovery.
• Handling audits or enquiries from international tax authorities.

Without expert guidance, even unintentional VAT errors can lead to penalties, delayed shipments, cash flow issues, or lost commercial opportunities.

The three main international VAT challenges businesses face

Multi‑jurisdiction VAT registrations

Businesses holding stock in various EU warehouses or selling goods into multiple EU countries may need several VAT registrations, depending on supply chains and customer locations.

Complex EU VAT rules (OSS/IOSS/triangulation/distance selling)

The EU offers simplification schemes, but Brexit means UK businesses can no longer use certain mechanisms, for example, the traditional triangulation simplification now generally requires an EU VAT registration.

However, for some businesses, registering for VAT in an EU Member State restores access to that type of simplification.

VAT on digital and e‑commerce transactions

Digital service providers and online sellers often fall within OSS or IOSS rules, which can centralise reporting and reduce the number of VAT registrations required across the EU.

Getting started with international VAT advice

Our International VAT Manager, Chelsie Robison, leads our global VAT offering and has extensive experience in international VAT compliance across a wide range of sectors.

Whether you are expanding overseas or simply need clarity on your VAT obligations, our team is here to help.

Contact the VAT team today to discuss how we can support your international growth.