working as a freelancer in Germany

[Olly]

aren't you working for a UK based agency though?
in which case you don't charge that agency VAT when you invoice

[dang65]

aren't you working for a UK based agency though?
in which case you don't charge that agency VAT when you invoice

How does the VAT thing work? I'm on a contract in Germany at the moment and my accountant originally mentioned this to me, but when I asked the agency about it they told me to put VAT on the invoice to them. I did that for the first month. Have I made a big mistake there?

[chef]

aren't you working for a UK based agency though?
in which case you don't charge that agency VAT when you invoice

i thought that but then i found this on the hmrc website

http://www.hmrc.gov.uk/vat/int-serv-abroad.htm

"However, with services, deciding the place of supply is more complicated. There are various rules that apply, depending on whether you have more than one business location, the kind of service you provide and the place where your business is legally registered.

The place of supply is important, because it determines where VAT is charged and paid.

If you are in the UK and the place of supply is in the UK, you charge and account for VAT according to UK VAT rules.

If you are in the UK and the place of supply is in another EU country, you can zero rate the supply if the customer is a business. However, you must charge and account for UK VAT if the customer is not a business, and you may need to register for VAT in the country of supply."

I am uk registered, I supply my services in the EU to a business, I dont earn enough for german vat threshold and i am below the 183 day limit.. so as i understand it I dont charge VAT for my invoices and i dont pay VAT in germany as im below threshold..

I will check it out with my accountant though..

[Olly]

How does the VAT thing work? I'm on a contract in Germany at the moment and my accountant originally mentioned this to me, but when I asked the agency about it they told me to put VAT on the invoice to them. I did that for the first month. Have I made a big mistake there?

if it's a UK agency you work for...then one of us is wrong!

[dang65]

if it's a UK agency you work for...then one of us is wrong!

There's a very good chance it's me that's wrong. It is a UK agency and German client. I asked the agency and they said to add VAT to the invoice. It's just that I don't really get why that would be wrong, but I'm a financial retard. Can someone explain it to me?