VAT between UK and EU

VAT between UK and EU

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A question,

If a company is based abroad (within the EU but not UK), and they supply services to a UK business, do they add on VAT? Also how would this work if the UK business was supply a service to an EU company?

Am I right in thinking that no VAT is charged on the invoice to the customer as they can apply the reverse charge rule, but must compete an EC Sales Listing?

Any advice is welcome. :)

 

Replies (4)

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By JazzySasha
28th Sep 2012 08:26

Place of Supply

You should read up about the place of supply rules. Different rules apply depending on what the "service" is.

A good place to start is here:- http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm 

Thanks (1)
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By Tamara habberley
28th Sep 2012 11:58

Hi Scott

Can you expand on what type of services the non UK business is providing to the UK business and vice versa? If so it might be possible to save you the time wading through HMRC's Public Notice 741A ...

 

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Replying to mrme89:
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By ScottRPriestley
28th Sep 2012 14:37

Hi Tamara,

Providing solutions to help Business with full data analytics projects, management consultancy and strategic advice/support..

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By George Attazder
28th Sep 2012 14:42

B2B general rule

Then you'd be correct in the 2nd paragraph of your post.  The B2B general rule applies, so the supply is where the customer is and if they're outside the UK you don't charge them VAT.  If they're outside the UK and in the EU, they will need to reverse charge and you will need to compete an EC Sales List.

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