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VAT: how to charge to EU

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    #11
    Originally posted by Guesstimator View Post
    I'm supplying 'consultancy services'..two words that are as vague in describing their meaning as 'meat paste' is.
    But yeah, IT consultancy, not goods.

    PS Cheers for the headsup about Sue, didn't know she'd left iPaye.
    Here she is.

    https://forums.contractoruk.com/acco...umstances.html
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #12
      Cheers NLUK, I'll drop Sue a line.

      Comment


        #13
        Originally posted by Craig@Clarity View Post

        In that case, the supply is outside the scope of VAT so you would invoice the NL company from your UK company with No VAT.
        I have been informed by a UK accountant and a EU based tax advisor that REVERSE CHARGE is to be used - see this thread: https://forums.contractoruk.com/acco...ml#post2870509

        This default font is sooooooooooooo boring and so are short usernames

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          #14
          Originally posted by MPwannadecentincome View Post

          I have been informed by a UK accountant and a EU based tax advisor that REVERSE CHARGE is to be used - see this thread: https://forums.contractoruk.com/acco...ml#post2870509
          OK....What is your interpretation of this?

          The OP is to charge VAT on their invoice at 20% or nothing at all or something in between. I'm not having a dig but Im genuinely interested to hear your understanding to the OP question and how they should approach this.

          Comment


            #15
            Originally posted by Craig@Clarity View Post

            OK....What is your interpretation of this?

            The OP is to charge VAT on their invoice at 20% or nothing at all or something in between. I'm not having a dig but Im genuinely interested to hear your understanding to the OP question and how they should approach this.
            Charge VAT at 0% and write "REVERSE CHARGE" on the invoice and quote the client's VAT number on the invoice - that is what I have been told to do for selling consultancy services to Belgium.
            This default font is sooooooooooooo boring and so are short usernames

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              #16
              Originally posted by MPwannadecentincome View Post

              Charge VAT at 0% and write "REVERSE CHARGE" on the invoice and quote the client's VAT number on the invoice - that is what I have been told to do for selling consultancy services to Belgium.
              You don’t “charge VAT at 0%”. It’s not a zero rated supply for VAT purposes. It’s in fact outside the scope of U.K. VAT as Craig has already said which means you aren’t charging VAT at all. It’s not quite the same thing.

              The only mention of VAT on your invoice should be a statement saying that VAT has not been charged and that the reverse charge applies. It’s then the customer’s responsibility to account for VAT.

              Prior to Brexit an EC sales list would have also been needed but that is no longer a requirement for U.K. businesses.

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                #17
                Originally posted by TheCyclingProgrammer View Post

                You don’t “charge VAT at 0%”. It’s not a zero rated supply for VAT purposes. It’s in fact outside the scope of U.K. VAT as Craig has already said which means you aren’t charging VAT at all. It’s not quite the same thing.

                The only mention of VAT on your invoice should be a statement saying that VAT has not been charged and that the reverse charge applies. It’s then the customer’s responsibility to account for VAT.

                Prior to Brexit an EC sales list would have also been needed but that is no longer a requirement for U.K. businesses.
                Agreed and I stand corrected. Additionally, I was told by the Belgian tax specialist to put the client VAT number onto the invoice as just stating "REVERSE CHARGE" is not sufficient.
                This default font is sooooooooooooo boring and so are short usernames

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                  #18
                  Ok. Assuming the OP company is based in the GB then the supply of consultancy service is outside the scope of VAT and that reverse charge does not apply post BREXIT. If they're based in Northern Ireland than reverse charge applies otherwise my original post is still true.

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                    #19
                    Originally posted by MPwannadecentincome View Post

                    Charge VAT at 0% and write "REVERSE CHARGE" on the invoice and quote the client's VAT number on the invoice - that is what I have been told to do for selling consultancy services to Belgium.
                    Pre 1 January 2021 that is true. Post BREXIT this is not true unless you're not based in GB.

                    Comment


                      #20
                      Originally posted by Craig@Clarity View Post

                      Pre 1 January 2021 that is true. Post BREXIT this is not true unless you're not based in GB.
                      Well the supply will still be subject to the reverse charge at the customers end, if the customer is in the EU. It doesn’t matter where the supplier is based. Just the same as I would have to account for the reverse charge on supplies I purchase from e.g. a US based supplier.

                      Whether or not any wording on the invoice relating to the reverse charge is applicable any more I don’t know but I would guess not as we are no longer subject to EU VAT rules.

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