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German-based company wants to claim UK VAT

German-based company wants to claim sales are VATable in UK

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UK-registered limited single-director-shareholder company moved to Germany in December 2017 where he now lives and works full time
The company got German VAT registration in April 2018
The UK VAT registration has not yet been cancelled, and he is now saying that some of his sales for the quarter ended 31/03/18 are UK sales with 20% UK VAT. This would enable him to reclaim UK VAT on some supposedly related expenses that were incurred in the first quarter of the year.
I think they are not UK sales because the company has no fixed establishment over here and the centre of operations is in Germany. He argues that some of the work was done over here by subcontractors, but I don't think that is relevant.

Can anyone confirm the position?

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By TheAccountant-ish
03rd May 2018 14:36

If your client contracted with X and provided the service to them, but has no fixed address in the UK from which the work is complete, then the VAT is treated as though the work was done in Germany, as it was.

If he has a UK VAT number he can certainly try and reclaim the VAT from the UK Gov. It's definitely worth a shot.

That being said, if the work was completed by subcontractors then they would reclaim the VAT from the client, and he would reclaim it off the subcontractors' invoice. I think you need to have a chat with your client about what happened and lock down those details.

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