Is VAT Chargeable?

[thegreengoblet]

Can anyone help?

I'm a VAT registered company that normally offers Consultancy work to the electronics industry in the UK. However I'm looking at designing and manufacturing an electronic board for a new client in Italy. If I deliver this completed product to Italy, do I need to charge VAT on my invoices?

[stuart-b]

They are within the EU, so I believe so. But if they provide their VAT number I think you can sell it without VAT (but show this).

[Eric Mc]

Are you selling a product or a service?

If it's a product, you can Zero Rate the sale provided the customer in Italy is VAT registerted in Italy and can provide you with his Italian VAT number.

If it's the supply of a service, you can only Zero rate the supply if you actually provide the service in Italy. Otherwise, you will need to charge VAT at the appropriate rate for the service you are providing.

[thegreengoblet]

Thanks guys.