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!
Replies (2)
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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 ?
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.