Reverse charge for a non-vat registered customer

Reverse charge for a non-vat registered customer

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We have a client who is based in the UK and registered for UK vat. The company provides website translations, content and imaging etc.

All customers are based in France and invoices are done on a 'reverse charge' basis with a note of the customer's EU vat registration number. However last month he invoiced a customer who is not vat registered.

My question is does he need to charge vat on the invoice to the non-vat registered customer or can he still reverse charge it? Also presumably this invoice should not be included on the EC sales list.

Thanks for your help

Michelle

Replies (5)

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RLI
By lionofludesch
08th Jul 2015 10:56

No

You need a TVA registration number to "reverse charge".  If the customer doesn't have one, the client cannot zero rate.

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By michelle456
08th Jul 2015 11:06

That's what I thought so

That's what I thought so therefore they do need to charge UK vat on the service invoice?

Thanks

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By shaun king
08th Jul 2015 14:56

NO

You don't need a TVA number to reverse charge it. The customer just has to be in business and this can be apparent by his business entity or you can request alternative evidence to support they are in business. Article 44 Directive 2006/112/EC

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Replying to SteveHa:
Red Leader
By Red Leader
08th Jul 2015 15:21

agree with Shaun

It also doesn't go on the ECSL.

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By michelle456
08th Jul 2015 17:35

That's really helpful - thank you all for getting back to me.

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