• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Collapse

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

  • You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
  • You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
  • If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

Previously on "VAT: how to charge to EU"

Collapse

  • Craig@Clarity
    replied
    Originally posted by TheCyclingProgrammer View Post
    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.
    Agreed. Same as your invoices from the US. There would presumably be no mention of reverse charge on their invoice because why would they care. It's your responsibility to account for the reverse charge in the UK.

    Leave a comment:


  • TheCyclingProgrammer
    replied
    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.

    Leave a comment:


  • Craig@Clarity
    replied
    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.

    Leave a comment:


  • Craig@Clarity
    replied
    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.

    Leave a comment:


  • MPwannadecentincome
    replied
    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.

    Leave a comment:


  • TheCyclingProgrammer
    replied
    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.

    Leave a comment:


  • MPwannadecentincome
    replied
    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.

    Leave a comment:


  • Craig@Clarity
    replied
    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.

    Leave a comment:


  • MPwannadecentincome
    replied
    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

    Leave a comment:


  • Guesstimator
    replied
    Cheers NLUK, I'll drop Sue a line.

    Leave a comment:


  • northernladuk
    replied
    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

    Leave a comment:


  • Craig@Clarity
    replied
    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.
    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.

    Leave a comment:


  • Guesstimator
    replied
    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.

    Leave a comment:


  • northernladuk
    replied
    Originally posted by Craig@Clarity View Post

    Funny how the mind works
    Works better with the aid of a bit of 'product'.

    Leave a comment:


  • Craig@Clarity
    replied
    Originally posted by northernladuk View Post

    Why what you after?
    Funny how the mind works

    Leave a comment:

Working...
X