Can we charge VAT on EUR invoice to UK company

Both companies VAT registered and the service is applicable to standard VAT.

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Hi,

We are a VAT registered company invoicing another UK VAT registered company for a VATable service. The other company asked for the invoice in Euros as they have the budget from their European HQ. We sent an invoice showing the amounts in EUR with the GBP equivalent including the standard rated VAT. 

They now say that you can't invoice in EUR and charge VAT. I believe you can (and we must charge VAT) as long as you show GBP equivalent so that that figure is submitted on VAT returns. 

Am I wrong or are they mixed up?

I would like to have just invoiced in GBP which will be my next step in any case, but trying to resolve this asap.

Thank you so much

Replies (4)

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By Bobbo
21st Feb 2024 15:44

Stapes55 wrote:

They now say that you can't invoice in EUR and charge VAT.

I think we'd all be invoicing in EUR if that were true!

Thanks (1)
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By FactChecker
21st Feb 2024 16:00

"Am I wrong or are they mixed up?" ... the latter.

Ask them to cite their source if they try to stick to their guns ... but otherwise stop playing nicely and just invoice as you would normally have done (in Stg and with VAT) - and let them carry the currency transfer costs.

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John Toon
By John Toon
21st Feb 2024 16:20

You're right but they probably think that by invoicing in Euros you're also invoicing the EU HQ, in which case they're trying to dodge the VAT. Assuming, of course, that you provided services to the UK company not the EU one

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By Stapes55
21st Feb 2024 16:22

Perfect, thank so much, thought I was losing it!

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