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's Relief Query 175 4
- Anyone using PracticePA? 257 5
- Do your DIY clients ever get their books right ? 64 1
- Tax on LLP members drawings not covered by future profits 648 26
- Tax - Paying Yearly 271 11
- Seeking advice: CGT after divorce when house sold and neither party was resident 194 3
- New company uses old Bank Account 234 3
- How do I correct a previous accountants major mistake on PAYE/SA? 461 5
- Sage Drive Queue.dta file lock out 341 8
- When is commencing trading not commening trading 188 3
- Income tax: Interaction between new marriage allowance and new nil band on savings interest 190 1
- charities 222 3
- How to find difference in Sage bank rec 283 6
- Auto enrollment. What's the basis for contribution ? 130 1
- converting garage to use as office 324 2
- recommended auto-enrolment pension scheme providers 664 13
- HOW is anyone obtaining an EORI number prior to shipment? 130 2
- How best to split income on a Buy To Let - married. How do you decide beneficial ownership 1,211 11
- Strike off 452 9
- Contracting, Subcontracting and Agency Worker Regs 162 2
- RTI Rollback to delete incorrect data 380
- Any thoughts on Capium? 340
- Vouchedfor.co.uk 295
- Motor Traders Assistant Bookkeeping Programme queries 268
- Tracesmart/Lexis Nexis AML software? Any opinions? 254
- Continuity of practice-ACCA 230
- Recommended International mobile phone coverage and costs? 177
- French ConnectionUK 168
- Can anyone explain Indian Minimum Alternate Tax 163
- APN's 159