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VAT between 2 EU countries

VAT between 2 EU countries

I have a new client, a haulage company that trades with other companies in Italy. My client is VAT registered so too is the Italian company. I realised my client does not charge VAT for the services to the Italian company and vice versa. As am not very conversant with European VAT, I would appreciate if someone could confirm if this is ok or guide me as to where I could have this issue clarified.

Many thanks.


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28th Sep 2009 10:06


It is the UK VAT rules you need to be aware of. From the facts you have given it is likely that the supply is liable to Italian VAT under the reverse charge rules - which means that your client is correct in not charging UK VAT.

The place to look this up is in VAT Notice 741 "Place of supply of services". Look on Page 29 for information about freight transport services. There is also guidance in Notice 744B "Freight transport and associated services".

Be aware that from 1 January 2010 your client will have to complete EC sales lists on a quarterly basis so it would be a good idea to get hold of their VAT number now in readiness.

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28th Sep 2009 13:47

b vvvv careful.....
I think the Great Rebecca is being a little ecumenical avec la verite    ??


I tell all my clients to never raise a £0 vat invoice to an EU customer without their VAT number FIRST. Any non-regd EU customer HAS to be charged Vat for virtually anything in the business world. It is a brave ‘man’ who advises clients to invoice as though someone is registered in advance of receiving some vaguely convincing proof?


We all know exactly where the VAT assessment would land with a thud, - not Italy.

The 2nd thud would be the massive writ from the (ex)client demanding a recompense for the advice from his accountant?

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By fndeloh
28th Sep 2009 18:13

Europe VAT
many thanks Rebecca and Abelljms.

Abelljms vous etes francaise comme mon pere? Mes salutations

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