Do I charge Canadians/US VAT?
Discussion
Blair Out
My view:-
If you physically shipping a network card to the USA, then no VAT is raised, if its only going to the UK then VAT is due. And the same with services/software.
A few years ago I did some work for an American Multinational at one of their UK offices. They raised the PO in the US and wanted the invoice sent to them in the US. I told them that I would have to add VAT to the value as thework was being wholey done within the UK. After a couple of PO's I then started getting PO's direct from the UK office and invoiced the UK accounts office changing VAT as normal. I suspect that was a lot easier for them to claim back!!
Hope that helps
davidy
My view:-
If you physically shipping a network card to the USA, then no VAT is raised, if its only going to the UK then VAT is due. And the same with services/software.
A few years ago I did some work for an American Multinational at one of their UK offices. They raised the PO in the US and wanted the invoice sent to them in the US. I told them that I would have to add VAT to the value as thework was being wholey done within the UK. After a couple of PO's I then started getting PO's direct from the UK office and invoiced the UK accounts office changing VAT as normal. I suspect that was a lot easier for them to claim back!!
Hope that helps
davidy
davidy said:
If you physically shipping a network card to the USA, then no VAT is raised, if its only going to the UK then VAT is due. And the same with services/software.
We supply a service (sales agency) to various European, US and Far Eastern companies. The work is done wholly in the UK, but we only charge VAT to the European companies, and the odd US one who has a European legal presence and wants us to invoice them here.
If we invoice the company in the US or Far East then there's no VAT.
We've been doing it like this for at least 20 years.
With "services", whether VAT is charged or not is dependent on the "place of supply of the service" - not the residential address of the business you are supplying.
If the service is actually supplied within the UK, then UK VAT MUST be charged on the invoice.
If the service is actually supplied "overseas", then the invoice is Zero Rated.
If the service is actually supplied within the UK, then UK VAT MUST be charged on the invoice.
If the service is actually supplied "overseas", then the invoice is Zero Rated.
Eric Mc said:
No - that's not the basis of not having to charge the VAT on services supplied. It doesn't matter where the customer is based. What does matter is where YOUR business supplied the services.
Section 10.1 describes perfectly what we do: http://tinyurl.com/2lw67g
It's a subtle difference but I presume the exemption applies because the goods we're arranging the supply for are supplied outside the EC (10.4). Even though those arrangements are made within the UK.
It's unthinkable that this is wrong - I've worked for major multi-national organisations and it's always been done like this.
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