New client VAT on EU supplies

New client VAT on EU supplies

Didn't find your answer?

An potential new client has contacted me today. A UK business but has been trading for over a year supplying legal consultancy only to clients in the EU. Turnover in excess of £82,000 p.a.

He is contending that he doesn't need to regsister for VAT anywhere as the supply is subject to reverse charge and the supply is 'where the customer is' and it's the customer's problem. I'm no VAT expert and particularly confused by these sort of situations but this just feels wrong. I feel like he should at least be registered but whether that is in UK or one of his customer's locations I have no idea.

Can anyone help ?

Replies (2)

Please login or register to join the discussion.

chips_at_mattersey
By Les Howard
24th Sep 2015 16:59

Reverse Charge

If the customers are in business, and depending on the nature of the services, your client may be right. If so, he needs customers' VAT registration numbers, as evidence of their business status.

And, he can opt to register in the UK, to recover input tax.

Thanks (1)
By gerrysims
24th Sep 2015 17:05

yes, in business

Yes, I forgot to mention that. Corporate legal services so they will have EU VAT registration numbers.

Noted about voluntary registration, I suspect they won't bother as very little input tax.

Thanks (0)