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.
- Entrepreneur - want to submit accounts by myself 183 5
- Transmission of ISA 35 2
- Bench-marking software, any ideas? 164 2
- Next Move 703 20
- Separate companies same Director buy from each other 158 2
- Self-assessment statistics 2,452 58
- Not renewing AAT 669 9
- CGT of shares gifted 380 6
- New dividend taxation 475 3
- Accountant won't release working papers 2,790 51
- Co purchase printed materials from EU - VAT 143 1
- Company car v company allowance 268 1
- Furnished Lettings - expenses normally bourne by tenant 436 9
- Company formation and bank account 422 9
- Owning overseas property 332 2
- MLR and benefitting from the disclosure 290 1
- Company Car for Owner Director number crunching - is there a ready reckoner? 268 3
- How did you recalculate your payroll fees 708 8
- Client tied in to accountant. Unfair contract? 716 9
- Importing Sage Data and Year End 268 2
- Self employed and HMRC Worldwide Subsistence Rates 666
- Acrobat Checkbox Help for New 64-8 409
- Property letting & CAs 397
- 2015 tax year end 394
- Interest paid - do new rules affect Tax Credits? 393
- FCA regulated company in a small group 346
- Self employed consultant working in Ireland 318
- Market Invoice (P2P invoice discounting) tax treatment 241
- DTA tie-breaker issue 210
- Tax on internet ad sharing income 204