Simple question, but I am getting conflicting answers. Client's sales are all zero rated. Do these have to be reported on the EC Sales List, even though there is no VAT involved?
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An ECSL is required for B2B supplies of services which fall into the General Rule. The customer is in the EU and has provided his VRN to the Client. No VAT is charged, but the sale has to be reported.
The issue with zero rated supplies is that they are in effect "VATable", it's just at 0%!
As a result, these supplies are regard as part of the VAT transactions of the business as a standard rated transaction would be.
HMRC are wrong!! EC Sales Lists allow other Member States to check whether acquisition tax has been accounted for correctly. Eve though it is a Zero rated service here that may not be the case in the recipient Member State.