Also, you should add this text to your invoice;
ACCORDING TO ARTICLE 21.1A SIXTH COUNCIL DIRECTIVE 77/388/EEC THE CUSTOMER IS LIABLE TO REPORT AND PAY VAT ON THE SUPPLY
Otherwise you could be liable to pay the VAT by the German authorities.
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Reply to: WFH for a German client
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Previously on "WFH for a German client"
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Although very likely no vat needs to be charged it's not absolutely certain. Depends on what the exact services are. Check the place of supply rules carefully.
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Yep, dont go for euro payment if you can help it. I got stung with that one. Rate gone down from 1.11 a year ago to about 1.25 now so it makes a bit of a difference. And of course, it costs to change into sterling.
Even working in OK for UK agency but european client.
If you do get forced into euro invoicing and payments, drop me a PM and I'll tell you what I know and also best place to convert it back to sterling (i.e not the bank!)
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Cross border transactions are not subject to VAT as long as they give you a valid VAT number.
Which you can check here: VIES
You really want to make sure that your client bills you in £, the Euro isn't looking too good at the moment and that could mean a lot less in your pocket.
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re:currency it's simply an issue of getting it in the contract that your rate is £X not €X - any company can easily send payment in any major currency.
re:VAT I don't believe you would be charging them VAT. I am WFH for a Swedish client as a developer and this was the conclusion there. "Place of supply" etc get a bit confusing but I'm sure one of the accountancy people will answer this 2mrw and clarify.
Out of interest, how did you find such a cushy gig? What kind of work?
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WFH for a German client
Hi,
I am new to contracting, and have been offered the chance to contract for a German client but I would be working from home in the UK using the client's laptop.
I am awaiting a contract from the client. I have searched the forum, and I'm confused about VAT, and potential problems in billing the client directly in Pound sterling.
Has anyone ever done a work from home contract with a German client?
Thanks in advance.Tags: None
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