I need to invoice a Spanish client registered for VAT in Spain for services carried in the UK. The services provided are installation of a small LED wall.
As the services are being provided in the UK wouldn't I need to charge UK VAT on it? Or would I invoice it with no VAT under the reverse charge scheme?
Many thanks in advance!
Replies (13)
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Google "place of supply rules services UK VAT" and that will take you to the HMRC guidance which is fairly clear
So you are supplying goods that don't leave the country (like the studio recording equipment in the example in 7.8) so still UK VATable...
As a rule of thumb I tend to think if some one says 'please can you install an LED wall/kitchen/recording studio IN MY HOUSE IN ENGLAND' it is pretty clear where the supply is made.
I think you have made the wrong decision.
If the place of supply is the UK and you charge UK VAT and your customer can make an 8th directive claim to recover. No net cost to customer. No risk to you.
If you zero-rate on the basis that the customer 'belongs' in Spain but HMRC consider the transaction should have been standard rate, you will have to account for VAT on the amount charged. Cost to you 1/6 of invoice amount. No upside for you.
It's a supply of goods FFS. Where were they at the time of the supply? Did the supply involve their removal from the UK?