Charging VAT To Malta
Discussion
Guys we are doing digital marketing for a Maltese company they say " VAT will be accounted for in Malta since you are providing an intra community supply to a taxable company in Malta therefore your invoices will exclude VAT."
Now I know this is sort of true but with caveats however I dont quite trust my accountants (were getting quotes in to change) so for now can anyone advise.
If it matters (which I am told it might) the annual amount will be £30 / £50k billed monthly
Cheers
Now I know this is sort of true but with caveats however I dont quite trust my accountants (were getting quotes in to change) so for now can anyone advise.
If it matters (which I am told it might) the annual amount will be £30 / £50k billed monthly
Cheers
As the sale of services is to Malta you will need to obtain the customers VAT number and display it on your invoice.
You will also need to include a line that states VAT is not being charged under the reverse charge. Something along the lines of “This invoice is subject to the reverse charge”.
Dunno if you use SAGE but from the accounting perspective enter this sale using VAT code “T22” – This is for sale of services in the EC.
You will also need to include a line that states VAT is not being charged under the reverse charge. Something along the lines of “This invoice is subject to the reverse charge”.
Dunno if you use SAGE but from the accounting perspective enter this sale using VAT code “T22” – This is for sale of services in the EC.
southendpier said:
As the sale of services is to Malta you will need to obtain the customers VAT number and display it on your invoice.
You will also need to include a line that states VAT is not being charged under the reverse charge. Something along the lines of “This invoice is subject to the reverse charge”.
Dunno if you use SAGE but from the accounting perspective enter this sale using VAT code “T22” – This is for sale of services in the EC.
Thank you, Xero has the same coding and I have put the VAT number and a line of explanation on the invoice.You will also need to include a line that states VAT is not being charged under the reverse charge. Something along the lines of “This invoice is subject to the reverse charge”.
Dunno if you use SAGE but from the accounting perspective enter this sale using VAT code “T22” – This is for sale of services in the EC.
My accountant suggested the following wording which I have been using on invoices for a number of years.
'No VAT chargeable since the supply is subject to the reverse charge on the customer – customer VAT registration No. XXXXXX'
You may also end up having to do a Value Added Tax EC Sales List return for HMRC along with your usual VAT return which shows a summary of customer VAT numbers and the invoice amounts.
'No VAT chargeable since the supply is subject to the reverse charge on the customer – customer VAT registration No. XXXXXX'
You may also end up having to do a Value Added Tax EC Sales List return for HMRC along with your usual VAT return which shows a summary of customer VAT numbers and the invoice amounts.
southendpier said:
You will also need to include a line that states VAT is not being charged under the reverse charge. Something along the lines of “This invoice is subject to the reverse charge”.
Where's this come from? I've been buying and selling all over Europe for donkey's years and have never put that on an invoice or seen it on someone elses.
Ean218 said:
Where's this come from?
I've been buying and selling all over Europe for donkey's years and have never put that on an invoice or seen it on someone elses.
EU rules. Its been in place for some time.I've been buying and selling all over Europe for donkey's years and have never put that on an invoice or seen it on someone elses.
Are you actually VAT registered? I'd be surprised if you haven't had a EC Sales List form to fill out before if so.
I rarely sell more than £2k a quarter to the EU but still have to fill out this form. Its not really any trouble for me but if you had multiple clients who all paid near a quarter end it could be as you need to fill out all the VAT registration numbers and amounts and return it within 14 days of the quarter end.
Ean218 said:
Where's this come from?
I've been buying and selling all over Europe for donkey's years and have never put that on an invoice or seen it on someone elses.
Reverse charge only applies to certain services and goods.I've been buying and selling all over Europe for donkey's years and have never put that on an invoice or seen it on someone elses.
https://www.gov.uk/guidance/the-vat-domestic-rever...
There is a difference between making Intra Community supplies and making supplies which fall under reverse charge rules.
The way other EU countries account for Intra Community purchases is slightly different to the way we need to record and report.
Same end result, just different rules for reporting.
The way other EU countries account for Intra Community purchases is slightly different to the way we need to record and report.
Same end result, just different rules for reporting.
sgrimshaw said:
Reverse charge only applies to certain services and goods.
https://www.gov.uk/guidance/the-vat-domestic-rever...
So only on a tiny subset of specialist exports which were prone to fraud, which explains why I've never heard of the requirement to add specific wording to invoices affected. And yes of course we fill in EC sales lists and have had several VAT inspections over the last 30 years or so........https://www.gov.uk/guidance/the-vat-domestic-rever...
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