VAT for fees, disbursements, overseas clients and shared costs.

Support for consultancies, agencies, legal and other professional service businesses with UK and cross-border fee income.

Discuss your position
01Map service and client status
02Determine place of supply
03Separate recharges and disbursements
04Align invoices and evidence
01

The invoice label does not decide the treatment

Retainers, success fees, expenses, recharges and disbursements need to be tested against the contractual supply. Calling a cost a disbursement does not remove it from the value of the service.

  • Fees and retainers
  • Expenses and recharges
  • Disbursement conditions
  • Mixed and bundled services
02

Cross-border services start with customer status

The general B2B and B2C place-of-supply rules can produce different results, with specific exceptions for land, events and other services. Evidence of business status and belonging should be retained.

  • Overseas business clients
  • Private clients
  • Land-related services
  • Reverse-charge invoicing
Primary sources

Tax guidance changes. These official sources were checked on 31 August 2026.

VAT Notice 741A: place of supply of servicesKeeping VAT records
Important

This page provides general information, not advice for a particular transaction. VAT treatment depends on the complete facts and current law.