UK contractor in Belgium - VAT question

[grabri]

A) is the agency incorrect to suggest that I charge VAT??
B) if I do not charge vat, how do I claim for expenses??

VAT and expenses are not really related.

If you are VAT registered then you pay VAT on some products that you buy (output tax) and collect VAT on services that you provide (input tax) you then pay(claim) this to(from) HRMC: input - output.

If your total output tax is greater than your input tax then you get a refund from HMRC. This is all assuming that you are registered and paying tax in the UK.

If you are providing the services from the UK to Belgium then as people have suggested you wouldn't charge VAT on your invoice as this would fall under the intra-EU reverse charge.

However it sounds like you are providing the services from Belgium and therefore you should adding Belgium TVA onto your invoices and be registered in Belgium with their HRMC equivalent - and offsetting your output tax against this.

It sounds like you need to take the advice of a Belgian accountant/tax adviser.

[Andy Hallett]

Speak to Sue @ iPaye.

PS I stopped reading past the point of your UK company charging Belgian VAT. Hopefully the posts in between that and this scared you into professional advice.