Hi, can anyone clarify this topic - how to treat international sales, when should I include 0% VAT in european union, what rate should I put outside european union (europe, usa, etc.)
Outside the EU is usually flagged as Out of Scope on the actual invoice.
For EU sales a reverse charge can normally be applied when the client is VAT registered in their member state and a valid VAT number has been supplied, see here for more details:
https://www.gov.uk/vat-how-to-report-your-eu-sales
To be able to apply the out of scope flag or reverse charge you will first need to set this preference in the client settings screen to whom you wish to apply these adjustments.
VAT can have many exemptions to the rule so it’s always worth double checking with your accountant.
ok so I can send him item with VAT rate 0%, lower the price of product by 20% and then claim it back on my return?