VAT Return for EU Supplies

VAT Return for EU Supplies

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Company A provides service to Company B (Dutch Company, VAT registered).

This is a consulting service and no VAT is charged. Company B is required to operate the Reverse Charge Rule in his own country.

example            Consulting services 1000 Euros

                                     VAT                0

Questions:

Is this considered VAT Exempt or Outside Scope of VAT by HMRC?

I believe the Reverse Charge Calculation is only required by the purchaser. Does this mean that this transaction does not enter onto the VAT Return?

How is this declared on European Sales List?

Thank you.

Replies (1)

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chips_at_mattersey
By Les Howard
13th Apr 2015 08:59

B2B supplies

I am assuming, from your description, that the services fall within the General Rule. (The main exception is land-related services, which are treated differently.)

Return - include value in Box 6. The supply is not exempt, but Outside the Scope of UK VAT, but still has to be reported to HMRC.

Show in ECSL; including value, and customer's VRN - form VAT 101 submitted online.

Thanks (1)