Reverse charge for VAT
I have a client newly registered for VAT who will be supplying consultancy services mainly to a company in Southern Ireland and therefore falls under the new place of supply rules.
I have ascertained from the VAT helpline that the VAT will be accounted for under the reverse charge principals with the place of supply being deemed to be that of the customer and with them being required to account for the VAT. They have not been overly clear as to what my client actually needs to show on his invoice when issued though.
My previous understanding of the reverse charge system was that he needed to show VAT on the invoice but state it as "zero rated under reverse charge" and that he was also required to show the customer's VAT number as well as his own. The VAT Office helpline have advised me, however, that he should not show any VAT at all and that he needs to retain the customer's VAT number but didn't seem to be able to answer whether he needs to show this on the invoice or not.
The customer will also be paying for any expenses such as travel in addition to the cost of the services but I couldn't get any clarification on whether these should be shown differently or the net amount listed on the invoice only.
They also advised me that he will not need to complete an EC sales list unless he is importing services himself or unless goods are involved but the requirement for the EC sales list falls on his customer. This seems to be different to how it reads on the HMRC website so which one is right?
Any help in clarifying exactly what needs to be shown etc will be greatly appreciated.
- Taxfiler - SA100 - More efficient? 687 5
- See you all on the other side 726 6
- 12Pay 491 2
- dividends 680 2
- R&D 341 1
- Quarterly Reporting - The Logistics 1,205 17
- Auto enrolment contribution rates 456 3
- How long are you waiting for appeal reply 446 4
- Borrowing money to loan to company 400 1
- Mother as Guarantor for Son's mortgage 561 5
- Seeking a tax case 668 9
- When do we qualify for state pension? 531 4
- Companies house strike off 608 3
- Tax treatment of alterations to property 455 2
- Moving to the cloud 763 9
- Iris open space/doc exchange for SATRs 223 2
- How much to charge for payroll? 924 16
- Unincorporated charity transfer to CIO 224 4
- BTC vs Digita 1,106 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 516 4
- HMRC Joint Filing 569
- Capital Contribution towards a company car 423
- Capital Reduction & Impact on EIS Shares 377
- IRIS and FRS 102 358
- Capitalising Finance Lease 335
- Marginal rates of tax 322
- USA help 322
- National Minimum Wage issue on Directors joining a Workplace Pension 319
- Class 2 NI 307
- Dormant company accounts under FRS 102 299