EU and ABROAD VAT understandings

Hi all!

Thanks for taking the time to read this.

Could you clarify my VAT understandings for EU & ‘abroad’ transactions? These are all from the viewpoint of a UK business.

EU - Supply of goods

DISPATCHES are accounted for dependent upon the customers VAT registration status:

1. VAT registered = zero-rated DISPATCH
2. Non-VAT registered = standard-rated DISPATCH

EU - Supply of services

The sale of services to an EU member country are outside the scope of UK VAT. Sales are still however reported in the VAT return.

NOTE: The place of supply (thus whether the sale of services is to an EU member country) is accounted for dependent upon the place of supply:

1. B2B = the place of supply is the customers residence
2. B2C = the place of supply is the suppliers residence

NOTE: The EU member customer should account for the purchase of services under the reverse charge scheme.

EU – Purchase of goods

ACQUISITIONS are accounted for in reference to the equivalent applicable UK VAT rate for the goods as a self-supply.

NOTE: The purchase of certain goods (microchips and mobile phones) are subject to the reverse charge scheme thus inside the scope of VAT for the customer.

EU – Purchase of services

The purchase of services from an EU member country are accounted for under the reverse charge scheme.

ABROAD - Supply of goods

EXPORTS are zero-rated.

ABROAD – Supply of services

The sale of services to an ABROAD country are outside the scope of UK VAT.

NOTE: The place of supply (thus whether the sale of services is to an ABROAD country) is accounted for dependent upon the place of supply:

1. B2B = the place of supply is the customers residence
2. B2C = the place of supply is the suppliers residence

ABROAD – Purchase of goods

IMPORTS suffer VAT on entry to the UK in reference to the equivalent applicable UK VAT rate. This is reclaimed via a HMRC C79 certificate.

ABROAD – Purchase of services (this is where I am most uncertain!)

The purchase of services from an ABROAD country are accounted for under the reverse charge scheme.

Thanks all for any input!

Coeus.