Summary
The overview of tax legislation issued with Budget 2026 says that from April 2027 the reverse charge on services bought from abroad will apply only if the UK customer is VAT registered; otherwise the overseas supplier must charge UK VAT. VAT e-invoicing will start in April 2029, and the foreign branch exemption becomes mandatory from 1 January 2027.
What it means for you
Indian IT and professional service exporters billing unregistered UK customers may need to register for and charge UK VAT from April 2027.
This summary is general information, not legal advice. The outcome of any case depends on its facts; read the source and take advice before acting.
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