I know this must have been asked a lot - and trust me, I have read a lot, but still struggling to get my head round this - I keep getting different answers and interpretations. I just need two things clarifying.
1) If I am a UK VAT registered company and I supply services to the USA, or any country outside the EU - I know that this is out of the scope of VAT, but what is the definition of out of the scope? Is it zero rated or exempt for the purpose of SAGE/Xero? Do I still need to include the service in box 6?
2) If I providing services to EU countries - they are Zero rated and the reverse charge applies. Do I still fill in a EC Sales list for services?
Is my understanding correct?
Thanks
Replies (6)
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Q1 - Outside the scope services are neither zero rated, nor exempt. But they do need to be included in Box 6 and input tax is recoverable.
Q2 - yes, you need to complete an EC Sales List for Reverse Charge services made to EU customers.
T22 for EC sales of services where you have their VAT number (B2B) is what my SAGE 50 notes say