VAT Cross Border Invoicing

VAT Cross Border Invoicing

Didn't find your answer?

Hello all.

My question is regarding a movement of goods from Company A (UK), to Company B (BE). The invoice flow:

Supplier (UK) >> Ourselves (??) >> Final Customer (BE)
Company A         Company B           Company C

Company A has sent Company B an invoice with 0 VAT (presumably reverse charged), and not quoted Company B's VAT number.

Company B is registered for VAT in both UK and BE.

My question is.. Can Company B choose to be charged to their UK OR BE VAT number? Or must it be to their UK, as that is the place of supply?

Thank you.

Replies (5)

Please login or register to join the discussion.

chips_at_mattersey
By Les Howard
22nd Aug 2014 15:49

Or, should the triangulation rules apply?

See HMRC Notice 725, chapter 13 for this. Company A may have assumed that the simplification applies, but I don't think they can do so.

The supply from Company A is to Company B, in the MS determined by Company B. If that is in the UK, then UK VAT must apply.

Thanks (0)
Replying to saltimbamba:
avatar
By jamesh777
26th Aug 2014 10:26

Hi Les,

I'm not sure what 'MS' represents in your message there?

Assuming company A had NOT already invoiced Company B - I was confused about how Company A would know which VAT registration to charge to (Company B's BE or UK VAT registration). Is Company B allowed to choose? Is there a rule that dictates which gets precident?

Thanks (0)
Euan's picture
By Euan MacLennan
22nd Aug 2014 17:40

Removal of goods

If Company A shipped the goods from the UK to Belgium (and has evidence of the removal from the UK), would it not be correct for Company A to zero rate the supply and for Company B to account for the acquisition tax (not strictly a reverse charge) in Belgium?

Thanks (0)
chips_at_mattersey
By Les Howard
26th Aug 2014 12:36

Removal of Goods

Logic seems to dictate that, in this example, the invoice from A shows the Belgian VAT number for company B, since the goods are removed from the UK to Belgium. No VAT is charged, therefore. (I have struggled to find an clear rule in HMRC guidance on this issue.) Also, I think it must be company B's choice as to which VAT number it provides to A.

MS - Member State.

Thanks (0)
avatar
By shaun king
26th Aug 2014 13:46

Upto company B

If company B provides its Belgian VAT number and Company A arranges transport to BE then Company A will treat as a supply for acquisition and company B accounts for acquisition tax in Be and charges BE VAT to end customer.

If company A supplied and delivered goods to Company B in the UK and did not have proof of movement to BE they would charge UK VAT and company B will then either move own goods to BE and account for acquisition tax in BE and charge BE to end user in Be, or Company B can arrange supply and delivery from UK to end user in BE and use his BE VAT number to shift place of supply to BE with customer accounting for acquisition tax in BE.

 

Thanks (0)