VAT

VAT

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Hi,

A UK VAT registered company has agreed a fixed price contract with a company in Switzerland. The service performed will be mainly an inspection of various sites of manufacture in the USA and to provide reports on the same.....therefore my question is, does the UK company have to charge VAT or is this outside the scope of UK VAT?
Thanks

Matt

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By thisistibi
10th Feb 2011 14:53

Place of supply

You need to establish the place of supply.

By default, the place of supply is where the customer is located (for B2B supplies).  However, this might be a land relatd service (I'm not sure) in which case the place of supply is where the land is located.  Either way, it seems like the place of supply is outside the UK - so I would say that your supply is outside the scope of UK VAT.

However, you might need to consider your VAT status in the USA and/or Switzerland.

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Quack
By Constantly Confused
10th Feb 2011 15:52

Agreed

I agree with thisistibi, it seems very likely the supply will be treated as made outside the UK regardless of whether the specific land rules apply in this case.

Depending on the sales level the other country may want you to register with them for their local tax however.

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