Should their be VAT on this?

[mickytruelove]

I run a company and we us a platform for influencer marketing, i am in the process of bookkeeping and noticed the invoice has not VAT on it.

The Platform (company) is based in the UK and so is my company, Invoice is in USD which i know is fine but surely this is a service and should have VAT?

The item on the invoice is described as "Subscription Fee".


Anyone know of a reason why this might not have VAT on it?

[JeffreyD]

Because the platform is not VAT registered?

[mickytruelove]

Nope, there is a VAT number on the invoice.

The Platform is brandbassador.com , a fairly big outfit.

[JeffreyD]

mickytruelove said:

Nope, there is a VAT number on the invoice.

The Platform is brandbassador.com , a fairly big outfit.

In which case on of the following

1. The service is considered outside of VAT
2. there's a mistake
3. They are bent.

[Eric Mc]

Where are they based?

[JeffreyD]

Eric Mc said:

Where are they based?

According to the OP they are based in the UK

[Simpo Two]

A UK company billing another UK company in USD?

[JeffreyD]

Simpo Two said:

A UK company billing another UK company in USD?

Was leading me to believe the service was delivered in the US and therefore deemed not liable for VAT.

[mickytruelove]

I think the invoicing in USD is fine as we the company that does our Amazon to Xero accounting does this but they charge VAT.

The only thing i can think of is if they are claiming to be an intermediary, as they connect us with "influencers" and i can see there are some exemptions for VAT in that case but i dont fully understand it.

[48k]

Does the invoice mention reverse-charge VAT?

[Mr Overheads]

If it's under £250 you can issue a Simplified Invoice and you don't have to show the VAT amount on it.

As long as it has all the other items listed on the link below in the Simplified Invoice column, it's a valid VAT invoice:
https://www.gov.uk/vat-record-keeping/vat-invoices

[mickytruelove]

48k said:

Does the invoice mention reverse-charge VAT?

no, just "NO VAT" under the total. Im used of reverse charge with google/facebook/amazon.

Will send Brandbassador an email and wait for a reply. Got 3 invoices for $750 each.

[Eric Mc]

Are they quoting a UK VAT number?

[mickytruelove]

Yes, seems odd.

[Eric Mc]

In VAT terminology there is no such thing as "No VAT". The correct definitions that should be used when VAT isn't to be charged are -

Zero Rate
Exempt
Outside the Scope

These are all different although in each case they will result in no VAT being charged.

[Simpo Two]

Well does it actually matter? Just pay it and let them worry about the VAT angle. Their problem not yours I'd say

[sgrimshaw]

As Simpo Two says, not your problem.

[Eric Mc]

It can become a bit of an issue if the supplier comes back later with a replacement or supplementary invoice charging the VAT they should have charged in the first place.
Of course, you can always reclaim any VAT you are charged but it can be a bit of an inconvenience having to process the revised invoice.

[jeremyc]

What does your contract (and/or purchase order) with them state in terms of VAT being applied to service charges?

Is it possible they have picked up an invoice template that has the amount listed in USD and not noticed (the fees actually being £750)?

What about previous invoices from them, or is this the first?

[anonymous-user]

Eric Mc said:

It can become a bit of an issue if the supplier comes back later with a replacement or supplementary invoice charging the VAT they should have charged in the first place.
Of course, you can always reclaim any VAT you are charged but it can be a bit of an inconvenience having to process the revised invoice.

Can they do that? I thought if the supplier screws up they can't then come back to you and say it's £750 + VAT, ie, they would have to supply an invoice with the VAT element so it was £750 inc VAT??