I buy an online service from a company registered in Finland. Nothing physical, nothing imported. The invoice I receive shows VAT at 0%. Do I need a different VAT rate?

It’s nice to see you here in the Community, @GHBrown. I can help you with your QuickBooks Online VAT rate issue.

Certain goods and services are VAT-free. This implies they are still taxable, but at a 0% rate. These are some of them:

• Insurance (but an Insurance Premium Tax (IPT) may apply).
• Doctors and dentists provide a variety of services.
• There are various sorts of education and training.

For more details, please go to HMRC's website to know when you can use a zero rate.

I also suggest consulting with your tax adviser. They will be able to advise you on which VAT type to use.

Alternatively, here are some helpful links about VAT codes and rates in QuickBooks Online:

• Set up and edit VAT settings, codes, and rates.
• QuickBooks VAT codes.
• Edit VAT rate in QuickBooks Online.

Visit us again if there's anything else you need help with. I'll be right here to help you with QuickBooks and your tax processing.

Hi @GHBrown 

There are weird rules around Place of Supply - particularly for digital/online services.

If your bored one evening - Notice 714A is a hoot : https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a

Personally, if it's just a few £ I would boil it down to whether that service would be zero or standard rated if you were buying from a UK based company.

• if standard rate, use 20.0% RC SG
• if zero rate, use NoVAT or Exempt if you prefer it to show on the VAT100

(the nett effect is the same - there is no extra UK VAT to pay)

Hope this helps.