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Do I need to register for VAT in this case?

I am a Non-VAT registered UK sole trader that is providing services to a VAT registered EU business.

I am a Non-VAT registered UK sole trader that is providing services (web development) to a VAT registered EU business.

My turnover is well below the VAT registration threshold. However, the business I provided the services for are asking for my VAT number because I did not supply one in the invoice for obvious reasons.
I told them that they should VAT reverse charge but they are still insisting they need a VAT number.

I would like to know what needs to be done at this point. Thank you very much in advance.

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01st Dec 2018 13:30

UK VAT legislation does not require you to register in that circumstance.
Your customer will need to use the Reverse Charge whether or not you are registered for VAT.

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to leshoward
01st Dec 2018 19:38

leshoward wrote:

UK VAT legislation does not require you to register in that circumstance.
Your customer will need to use the Reverse Charge whether or not you are registered for VAT.

Thank you very much for your reply!

If I could only ask you one more question; my invoice contains the provision 'Reverse Charge' and does not contain any VAT information (either mine or the business that received my services). It additionally contains my business details and the business that is billed (name, address etc), the date, unique invoice number and of course the service provided as an 'item'. Is this wrong? If yes, what sort of information should there be mentioned on the invoice because I am pretty sure the invoice I issued is straighforward and abides by the requirements.

Thank you very much once again for taking your time to reply.

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01st Dec 2018 20:05

EU companies insisting on obtaining a VAT number from UK suppliers is a common occurrence. I put it down to the fact that a lot of EU countries have much lower registration threshold than we have, with some (Spain for one) having no threshold, ie, all businesses must register.

I have written letters for a couple of clients to their European customers explaining why they do not have a vat number. In fact, one client of mine registered for vat voluntarily for this very reason!

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