US Company with EU VAT number charging B2B VAT to UK Business

US Company with EU VAT number charging B2B VAT...

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Head spinning at this stage.

New client provides SEO, branding and web hosting services to UK businesses.

An American company provides the web hosting for some of this and charges my client in US$ including 20% VAT and quoting an EU VAT reg'n number.

Can we give the American company the client's UK VAT reg'n details and remove the need for the Americans to charge VAT?

As it is an EU VAT number being quoted by the American company we can, presumably, then account for it by reverse charge?

I find the new HMRC web layout totally frustrating and I'm going round in circles

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chips_at_mattersey
By Les Howard
21st Oct 2015 18:54

Reverse Charge?

Presumably the US company is registered somewhere in the EU. Do check the number of the VIES system (just Google VIES, and follow the link).

Once you are satisfied the VAT number is correct, as them to re-invoice without VAT, and provide your Client's UK VAT number. Your Client can then use the Reverse Charge to account for the VAT in the UK.

(I agree with you that HMRC's explanation of this is not good.)

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By GraceCourt
25th Oct 2015 21:05
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