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.
- Buy Samsung Galaxy Note 5 72 1
- Small amount of untaxed royalties for someone outside SA 261 4
- Is Xero payroll as rubbish as I suspect it is? 1,736 39
- Accounting for corporation tax 271 8
- Sole trader registering for the first time 340 1
- Digital tax accounts - what do we expect? 1,011 18
- Creative Auto Enrolment 584 8
- Tax Fines - HMRC 882 15
- Can an owner hold company money 335 6
- Account and Taxable Profit 332 17
- Class 2 NIC 305 5
- Probate services 430 9
- Is self-employment "another job" for PAYE 405 7
- Vat payable on van 191 1
- Bookkeeping Rate of Pay 2,843 42
- Invoices raised after company dissolution 247 7
- Community Faux Pas 936 26
- Cash gift from India 165 1
- Is cloud accounting actually pretty pants? 2,320 40
- Windows10 217 4