VAT : Working in Netherlands

[Boo]

You must include in your flat rate turnover:
...
· the value of supplies to other EU countries
...

I would enquire whether this applies to supplies that are made overseas ? AIUI, bespoke software services such as most of us perform are considered to be made in the destination country and are therefore not subject to UK VAT. But you'd better check that is still true and that it applies to you, if so then you should presumeably not include it in your flat rate calculation and should not have to hand over the VAT.

Boo2

[Craig at Nixon Williams]

Thanks a lot for your guidance and comments. I cam across this information on HMRC reg Flat Rate and it does say if my sales are under EU Countries then I need to pay the VAT at Flat Rate

You must include in your flat rate turnover:
· VAT-inclusive sales and takings for standard-rate, zero-rate and reduced-rate supplies
· the value of exempt supplies like rent or lottery commission
· sales of capital expenditure goods, unless they're goods where you reclaimed the VAT on the purchase
· the value of supplies to other EU countries
You must exclude from your flat rate turnover:
· private income
· sale proceeds from goods you own but which haven't been used in your business
· any sales of gold covered by the VAT Act
· non-business income and supplies outside the scope of VAT
· sales of capital expenditure goods where you've reclaimed the VAT on their purchase
· bank interest
For furthered reference please read: HM Revenue & Customs: Flat Rate Scheme: how to complete your VAT Return box-by-box



Any comments on this.

Thanks

You need to add the value of sales made which are outside the scope of VAT in box 6 of the return - however the flat rate percentage should not be applied to the sales made which are outside the scope of VAT.

If you are going to be working there for a while then it may be worth coming off the flat rate scheme as (depending on the nature of supplies made to the Netherlands) you may be able to reclaim some VAT on expenses incurred in the UK. Bear in mind that if it is a short contract, if you do come off the Flat Rate Scheme you will not be able to re-join the scheme for a year.

Hope this clarifies.
Craig