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Quick question about remote working for client in Germany

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    Quick question about remote working for client in Germany

    I've never had a European client so just quickly while I am on email ping-pong with an agent:-

    Prospective client is in Germany. Will allow remote working at least for now.

    My understanding is that (April) IR35 determination will have to be made by my company, because the client is not UK based.

    I will invoice from my Ltd. The client will pay in Euros to my UK account where the bank will convert to £. Is that correct?

    What about VAT - is there a German equivalent?

    All other factors remain as normal - like UK corporation taxes.

    #2
    Originally posted by ChimpMaster View Post
    I've never had a European client so just quickly while I am on email ping-pong with an agent:-

    Prospective client is in Germany. Will allow remote working at least for now.

    My understanding is that (April) IR35 determination will have to be made by my company, because the client is not UK based.
    From memory it actually depends on whether the company has any UK presence or not.
    Last edited by eek; 7 January 2021, 14:20.
    merely at clientco for the entertainment

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      #3
      This is how I normally charge(d). Everything remains as usual, except that I use HMRC exchange rate for that month to show the VAT in £'s. This converted £ is the one you pay as VAT.
      Last edited by BigDataPro; 8 January 2021, 15:23.

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        #4
        Originally posted by ChimpMaster View Post
        I've never had a European client so just quickly while I am on email ping-pong with an agent:-

        Prospective client is in Germany. Will allow remote working at least for now.

        My understanding is that (April) IR35 determination will have to be made by my company, because the client is not UK based.

        I will invoice from my Ltd. The client will pay in Euros to my UK account where the bank will convert to £. Is that correct?

        What about VAT - is there a German equivalent?

        All other factors remain as normal - like UK corporation taxes.
        Wouldn't your German client have to self declare the equivalent VAT for Germany and pay it. I think it would European VAT that they would have to pay.

        Your LTD (lucky you, if you win this contract) would pay the corporate tax as normal for the tax year.

        Get a international tax expert on board?

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          #5
          If it is a service you don't have to add VAT, the client will have to self declare. As far as I understand IR35 does not apply for contracts abroad

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            #6
            I work through my LTD for a German client and don't charge VAT. I fill in an EC Sales list every quarter which shows the invoiced amounts and the German agency does the same with whatever their system is. My invoices list their MwSt VAT Number which you will need to get from whoever pays your invoices. I'll need to check what happens from Jan 2021 actually.

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              #7
              Quick question about remote working for client in Germany

              Apologies if this has already been answered on here before... since Brexit, can a UK Limited company still charge an EU-based client, if you’re working for that client from the UK?

              And if you occasionally visit the EU-based client, eg. for business meetings, is that allowed? With a UK or an EU country passport?

              Comment


                #8
                Originally posted by tl97 View Post
                Apologies if this has already been answered on here before... since Brexit, can a UK Limited company still charge an EU-based client, if you’re working for that client from the UK?
                Why would they not be able to do that? You can invoice any client anywhere in the world (well, perhaps not including North Korea ).

                Originally posted by tl97 View Post
                And if you occasionally visit the EU-based client, eg. for business meetings, is that allowed? With a UK or an EU country passport?
                Yes, no problem. Business travel is fine, visa free (e.g., business meetings, signing contracts, attending training). If you want to do productive work in the EU, you'll probably need a work visa.

                To the OP: yes, the IR35 determination is made by YourCo if the entire supply chain about YourCo is fully overseas. If any company in the supply chain above your company has a UK presence (e.g., a UK branch office), then they will be the party responsible and liable.

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