Invoicing Europe - VAT question
Discussion
David_s said:
If you get a valid VAT number from a customer in Europe then you do not have to charge VAT. No VAT number and you do have to charge. If you get the VAT number wrong you receive a letter from the non-compliance department asking you to correct the error, they do check.
Many thanks 
My Company is registered in Ireland and according to my accountant and the Companies in the UK that we supply services to or purchase services and goods off, so long as BOTH Comany's VAT numbers appear on the invoices then we can zero rate the VAT.
I can tell you having pratically a zero VAT liabillity is one of the most wonderfull things to be able to do to improve cash flow.
best
Ex
I can tell you having pratically a zero VAT liabillity is one of the most wonderfull things to be able to do to improve cash flow.
best
Ex
Be very careful about the rules surrounding "Supply of Services". They are different to the rules regarding "Supply of Goods".
However, as stated previously, if both the supplier and the receiver of the services are VAT registered in their respective EU countries, it should be possible to Zero Rate the sales invoice, irrespective of where the Supply was made. You must quote your customer's VAT number on YOUR invoice (as well as your own VAT number).
Below is an extract from the VAT Notice regarding what is meant by "Place of Supply" when supplying an overseas customer..
1.6 What does “place of supply” mean for UK suppliers?
If the place of supply of your services is the UK, you must charge any UK VAT due and account for it to Customs and Excise regardless of where your customer belongs. If the place of supply of your services is another member State, you or your customer will be liable to account for any VAT due to the tax authorities of that country.
Where the place of supply of your services is outside the UK, you should ensure that your records demonstrate that your supplies are eligible for such treatment.
However, as stated previously, if both the supplier and the receiver of the services are VAT registered in their respective EU countries, it should be possible to Zero Rate the sales invoice, irrespective of where the Supply was made. You must quote your customer's VAT number on YOUR invoice (as well as your own VAT number).
Below is an extract from the VAT Notice regarding what is meant by "Place of Supply" when supplying an overseas customer..
1.6 What does “place of supply” mean for UK suppliers?
If the place of supply of your services is the UK, you must charge any UK VAT due and account for it to Customs and Excise regardless of where your customer belongs. If the place of supply of your services is another member State, you or your customer will be liable to account for any VAT due to the tax authorities of that country.
Where the place of supply of your services is outside the UK, you should ensure that your records demonstrate that your supplies are eligible for such treatment.
Indeed. So a good starting point would be to define what the services are, and what they relate to. For example, consultancy services in relation to the renovation of a building located in the UK (and owned by the Belgian business) may attract a different answer to consultancy services related to organising a conference in Spain.
sooooo, if I supply business development consulting services to a company in Belgium and I have their VAT number, and its for business they are not doing in the UK, I don't have to charge VAT. right? (even if I actually write some of the stuff in my office in the UK)
Andy
Andy
Edited by andymadmak on Tuesday 5th June 17:00
Eric Mc said:
That's the way I would interpret it.
I would strongly advise checking this out with your accountant.
As always, check with someone on a professional basis. He may want you to put a little legislative reference on your invoice. Also, I believe that, rather than simply not charging VAT, you are charging it at a zero rate...because presumably you may want your input tax back, providing it's recoverable, natch I would strongly advise checking this out with your accountant.
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