Reverse charge vs Zero Rated EC Services

Reverse charge vs Zero Rated EC Services

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What is the difference between the two mentioned tax codes?

My UK based company (VAT registered) is supplying IT services to a company that is located in Germany. That company is also VAT registered. I'm wondering which of the two tax codes should I use for my invoice. 

Thanks!

 

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RLI
By lionofludesch
20th Jul 2016 08:21

Difficult to say on the scanty information provided. You speak of "codes" which are a software thing, rather than a legislation thing.

But, hazarding a guess, Reverse Charge is on stuff you buy and Zero Rate EC Services on what you sell ?

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By DMGbus
20th Jul 2016 08:28

Sage tax codes include the following:
T22 : Sale of services to customers in the EC.
This is where VAT is applied by the customer under reverse charge arrangements.

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