I have a client who is currently employed full time in the UK. He has been offered a two year fixed term contract with a German company at a much higher rate than he is currently being paid, but as a contractor rather than an employee. He is UK national, resident and registered for taxes here. He will be working from the UK. His annual income won't take him over the UK VAT threshold but it will take him over the German VAT threshold. I have suggested that his best option would be to set up a Limited Company here in the UK for billing the consultancy fees but his prospective client has said he will need to register for VAT in Germany to account for the VAT on his consultancy fees. Can anyone please help me understand whether he actually needs to do this, and if so, how to go about it. Thanks in Advance.
16th May 2021
British consultant contracting to German company
My client has been told to register for VAT in Germany to account for VAT on his consultancy fees
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