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VAT supplies EU

VAT supplies EU

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A UK company sends some labour to France to install some industrial pipework. The actual customer is a UK based business and this is the company that is being invoiced. The customer has no other establishment as such in France. Is UK VAT charged as normal? Thanks.

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By jcace
12th Apr 2018 20:57

Sounds like this might be a land-related service, in which case the place of supply would be France together with a requirement for French VAT registration. See VAT Notice 741A section 7.

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to jcace
13th Apr 2018 08:35

Thanks. So to ask what might possibly be a dumb question but as I have never come across it.....is it possible for a UK VAT registered business to reverse charge something to another UK VAT registered business depending on where the respective parties 'belong'?

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By jcace
to andrew1211
13th Apr 2018 09:30

VAT Notice 741A Para 2.9: If you supply services whose place of supply is in another member state, you may be liable to register for VAT in that country, but only if the ‘reverse charge’ does not apply.
Para 5.3: The reverse charge doesn’t apply to supplies of services where both the supplier and the customer belong in the UK. It only applies where services are supplied in the UK by a supplier belonging overseas. Services which, under the place of supply rules, are supplied in another country are outside the scope of UK VAT. Such services can only be subject to tax in that country.

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