Hello
Anyone got direct experience with VAT Reverse Charge and sales to EC countries? Just trying to get me head round it
On regular VAT calculation (not Flat Rate VAT)
Understanding the VAT reverse charge is essential for businesses buying and selling goods or services cross-border in the EU - rbcVAT Limited
ie. my LTD CO sells a service to Germany company for 100 GBP.
German company pays us 100 GBP, and writes Reverse Charge on receipt.
Called HMRC VAT line, but they didn't really know about it, just pointed me online.
So it seems we record
Sale: 100 GBP
Box 2 acquisition tax: 20
Box 4 reclaim: 20
Box 5: Nothing to pay
Box 7 net price: 100
Box 9 EU acquisitions: 100
Does this sound right?
What seems surprising, is that HMRC make no money out of VAT on foreign sales.. German company doesn't pay German VAT authority either.. so it's kind of completely exempt!?
Anyone got direct experience with VAT Reverse Charge and sales to EC countries? Just trying to get me head round it
On regular VAT calculation (not Flat Rate VAT)
Understanding the VAT reverse charge is essential for businesses buying and selling goods or services cross-border in the EU - rbcVAT Limited
ie. my LTD CO sells a service to Germany company for 100 GBP.
German company pays us 100 GBP, and writes Reverse Charge on receipt.
Called HMRC VAT line, but they didn't really know about it, just pointed me online.
So it seems we record
Sale: 100 GBP
Box 2 acquisition tax: 20
Box 4 reclaim: 20
Box 5: Nothing to pay
Box 7 net price: 100
Box 9 EU acquisitions: 100
Does this sound right?
What seems surprising, is that HMRC make no money out of VAT on foreign sales.. German company doesn't pay German VAT authority either.. so it's kind of completely exempt!?
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