Share this content
11

Vat query - EU customer requesting invoice without charging vat

Vat query - EU customer requesting invoice...

Didn't find your answer?

Hi could someone help as I have not had any dealings with EU Customers.  A new customer ordered and paid for a skip delivery in the uk via paypal,  They have now asked for the Invoice to be sent to their company based in Germany which has no office in the uk without charging vat.  As the skip hire was based in the uk should vat be charged on their Invoice?

Replies (11)

Please login or register to join the discussion.

RLI
By lionofludesch
15th Jan 2015 09:20

Services

I'm guessing that you're not supplying a skip - you're supplying a service of rubbish disposal so we need to be looking at service rules rather than goods rules.

I don't see this as being part of any of the special rules, so the service is deemed as supplied where the customer belongs - in Germany.  Assuming that he has a valid German Mehr Werk Steuer (VAT) number, there's no VAT.

 

But I'm no expert ................

Thanks (0)
Replying to ireallyshouldknowthisbut:
avatar
By Henri-Hound
15th Jan 2015 11:26

Thank you so much for your help.  I have called the Vat Office just to clarify and they have advised the same that service rules apply and Vat Notice 741a Section 5 refers.

Thanks (0)
Euan's picture
By Euan MacLennan
15th Jan 2015 10:23

Who placed the order?

Are you saying that whoever placed the order gave a UK address for the customer and then, later asked for the invoice to be sent to a company in Germany?  If so, VAT would be chargeable on the invoice to the customer in the UK (not because the skip hire was in the UK).

However, I agree with the Lion about the place of supply if the customer was in Germany.

Thanks (1)
RLI
By lionofludesch
15th Jan 2015 11:18

Thank you Euan

Appreciated. 

Yes - I took the customer to be German at face value. Worth confirming.

Thanks (0)
avatar
By Henri-Hound
15th Jan 2015 11:43

What the Vat man advised Vat in this instance is not chargeable under the section 5 b2b general rule.  The Company who placed the order for delivery in the UK are based in Germany and have no offices in the UK and have a registered german equivalent vat number. Under this B2B rule for supplies of services the supply is made where the customer belongs ie not where the skip has been delivered.  Hope this assists and clarifies it a bit more.

Thanks (0)
RLI
By lionofludesch
15th Jan 2015 13:20

Delivered

Again - you're not supplying a skip.

In due course, you'll get the skip back and the Germans will be left skip-less.

If you were selling the Germans a skip and delivering it to an address in the UK, there'd be VAT on it.  You need to be clear what you're supplying.

Thanks (0)
avatar
By Henri-Hound
15th Jan 2015 13:58

Sorry Lionofludesch you are correct..  My client is not selling a skip he is supplying a service of rubbish disposal to an address in England for a Company whis is based in Germany to put their construction waste in for my Client to take it away. As the Company is German based with no uk offices they requested the Invoice to be sent excluding the uk vat charge.

Thanks (0)
RLI
By lionofludesch
15th Jan 2015 14:15

Exactly

Yes - you've got it.

Selling a skip would, of course, be a supply of goods, not services.

:-)

Thanks (0)
Euan's picture
By Euan MacLennan
15th Jan 2015 14:20

Construction waste

Removal of construction waste might well be considered as a supply of services relating to land, which is made where the land is located.  If so, UK VAT should be charged, regardless of where the customer belongs.

We need advice from one of the VAT experts - Shaun, Les, Spider, anyone?.

Thanks (0)
By Vered Welsh
18th Jan 2015 10:12

Land related services

I can't really see a skip hire being land related.  Certainly, skip invoices I see for UK clients in Germany and elsewhere, all fall under the Reverse Charge and no VAT is charged on them.  The same should apply in the UK.

Thanks (0)
RLI
By lionofludesch
18th Jan 2015 10:44

Considered it

I considered the Land exception and dismissed it.

Thanks (0)
Share this content

Related posts