VAT Headache

Charge or not to charge

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I'm not too sure if i'm over thinking this.....

a UK company supplies services within the EU (not in the UK) to another UK company (both are registered for UK VAT). Normal rules apply -  the place of supply is the place where the customer belongs. Therefore, normal UK VAT rules apply..... do you agree?

Replies (9)

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By tom123
23rd Jun 2017 20:32

What are the services?

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By peterpaice
23rd Jun 2017 20:34

management consultancy

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By Ruddles
23rd Jun 2017 20:43

And where does the customer belong?

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By tom123
23rd Jun 2017 20:45

Sounds like normal rules - assuming the customer does not also have a place of business in the EU.

I am intrigued how the services can be made in the EU if the customer is not established there though. But then, I appreciate it is tricky to describe real life in a few words on Aweb.

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By peterpaice
23rd Jun 2017 21:04

Both companies place of business is within the UK. The service is carried out on a marine vessel throughout marinas within the EU of which neither of the UK companies own so from my understanding this does not constitute a place of business.... unless of course I'm incorrect

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Replying to peterpaice:
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By tom123
24th Jun 2017 09:02

Are you sure these could not be construed as a 'service related to land' - which would be chargeable where the land is?

https://www.gov.uk/government/publications/vat-notice-741a-place-of-supp...

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By peterpaice
24th Jun 2017 14:21

I can't imagine so as it is directly relates to the marine vessel.....

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Replying to peterpaice:
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By tom123
24th Jun 2017 15:47

Oh, I thought it related to the Marinas in some way..

Everything is pointing towards standard rules, in my view.

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By Portia Nina Levin
25th Jun 2017 13:08

You're providing management consultancy on board "marine vessels" for a UK-based customer?

The only VAT "headache" here is for your client, who has engaged an inadequate adviser.

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