Overseas service providers: prepare for new UK VAT obligations
05 November 2026
Overseas businesses supplying services to UK customers could face a new UK VAT registration requirement from 1 April 2027, following a change announced in the 2026 Autumn Budget.
Currently, many services supplied by overseas businesses to UK business customers fall within the VAT reverse charge, under which the customer takes responsibility for accounting for VAT.
From 1 April 2027, the reverse charge will apply only where the UK customer is VAT registered. Where the customer is not registered, the overseas supplier will instead be responsible for charging and accounting for UK VAT on affected taxable services. This may require suppliers to register for UK VAT for the first time.
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