A friend of mine runs a Marketing company.
She changed accountants last year because they missed to submit some VAT returns and she got penalties.
She appointed new accountants 6 months ago, paying a decent fee as she didnt want to have problems.
Today she received an email from the Finance Manager of one new European client who have queried why she is charging VAT as it is a B2B digital service (hosting their websites) and they are based in Europe so Reverse Charge should apply.
I told her I agree with the Finance Manager but then she told me she has charged hundred of thousands of pounds during the last 5 years to other European clients and all of them paid her the VAT. And none of the accountants have ever said anything about it.
Am I missing something or she has overpaid to HMRC?
What is the procedure to follow if she has incorrectly charged all that VAT?