HMRC payments when not charging VAT

[SandyD]

Hey all, working on a contract in Scandinavia at the moment, and I checked with several other contractors from the UK, they are from different agencies and all were told the same thing, there we do not charge the VAT when we invoice, apparently the agencies charge for VAT on our behalf and we don't need to worry about it lol ... which means we make a loss on the flat rate.

Anyway, how does the VAT submission for HMRC works when one is not charging VAT?

NLUK: I know what your answer will be but I assure you I went through that route already but forgot the answer

[MrMarkyMark]

Obviously difficult to give an answer on such little detail, but this might help you:-

Contractors' Questions: Do I have to pay my agent's VAT? :: Contractor UK

[SandyD]

Obviously difficult to give an answer on such little detail, but this might help you:-

Contractors' Questions: Do I have to pay my agent's VAT? :: Contractor UK

Thanks for that, however that link is not related, my agent is in Scandinavia as well as the end client. But its true I was told to quote my VAT number but add 0 VAT.
My question is not due to dispute of payment... am just asking how is this handled when I submit my quarterly VAT submission to the HMRC.

[MrMarkyMark]

Thanks for that, however that link is not related, my agent is in Scandinavia as well as the end client. But its true I was told to quote my VAT number but add 0 VAT.
My question is not due to dispute of payment... am just asking how is this handled when I submit my quarterly VAT submission to the HMRC.

Thank you

http://forums.contractoruk.com/accou...mpany-vat.html

[TheCyclingProgrammer]

Supply is outside the scope of UK VAT and doesn't go on your VAT return if you're on the FRS so you won't be losing anything. It's not a zero rated supply, you just don't add VAT. You should also mention on the invoice about the reverse charge applying.

[MrMarkyMark]

Supply is outside the scope of UK VAT and doesn't go on your VAT return if you're on the FRS so you won't be losing anything. It's not a zero rated supply, you just don't add VAT. You should also mention on the invoice about the reverse charge applying.

I actually linked to one of your posts

[PurpleGorilla]

Hey all, working on a contract in Scandinavia at the moment, and I checked with several other contractors from the UK, they are from different agencies and all were told the same thing, there we do not charge the VAT when we invoice, apparently the agencies charge for VAT on our behalf and we don't need to worry about it lol ... which means we make a loss on the flat rate.

Anyway, how does the VAT submission for HMRC works when one is not charging VAT?

NLUK: I know what your answer will be but I assure you I went through that route already but forgot the answer

I have done work for a few UK universities who are VAT excluded in the UK.

So invoice without VAT but yes you pay FRS VAT on the full turnover.