Reverse charge not applied

Reverse charge not applied

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Hi,

I'm just preparing the VAT return for a client who offers management services to businesses within the EU. This quarter she has been working in Netherlands. I should point out she is a new client of ours.

The services I believe fall within the B2B rules within the EU and therefore the customer should account for the VAT.

The client has issued the invoices with VAT included at the UK rate and the customer has paid them.

What would be the best way to correct this? 

The services do not come within the service exemptions of applying B2B.

Many thanks

Replies (2)

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Teignmouth
By Paul Scholes
17th Mar 2015 19:16

Unusual

What usually alerts the supplier to there being a problem is when the customer kicks up a fuss about being charged UK VAT.  Do you know why they didn't complain? 

If you are happy that the customer is a business and your client has their VAT reg'n number then I'd tend to suggest a credit note for the UK VAT, and a refund, unless they want to use the C/N against future charges.

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By pedre
18th Mar 2015 14:06

Many thanks Paul.

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