My company owns its commerical premises, which is opted to tax. We are renting out desk space to a UK national who works for a company based in Taiwan. He has asked that the invoice be made out to this company. It is not registered for VAT in the UK.
Looking at the HMRC website, I have deduced that as the supply is land based in the UK, VAT is chargeable.
- Is this a correct deduction?
- How do I process this sales invoice to account for the VAT correctly with HMRC?
- If the answer to the second question is complicated, is there an acceptble way to raise the invoice to keep it simple? At the moment the overseas company is expecting to pay for the rent direct. The UK national is self-employed, so what are the implications of invoicing him direct instead?
I am hoping that I have just complicated a very simple situation!
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If the UK national is registered for VAT, then invoice him. Or, suggest that he should be!