I have been reading HMRC guidance on the requirements for ‘Reverse Charge’ wording on VAT invoices. Quite frankly, they could do better!
The basic guidance on the contents of VAT invoices is found in Notice 700, chapters 16 & 17. There is also Notice 700/21, Record Keeping. And neither of these address the question very well. The fuller guidance is tucked away in Information Sheet 10/07.
The link, if it works, is here: https://webarchive.nationalarchives.gov.uk/20100407190309tf_/http://cust...
This document explains the particular requirements relating to Reverse Charge supplies. It even provides a range of suggested wording to be included on your invoice. You can simply annotate the invoice, ‘reverse charge supply,’ or make it much more legal-sounding by referring to the EC VAT Directive 2006/112/EC.
What if you are the customer, and your supplier, located elsewhere in the EU, issues an invoice with no Reverse Charge wording?
The Place of Supply rules do not depend on the accuracy or completeness of the invoice. The Place of Supply under the General Rule is the country in which the recipient is located. You are required to account for VAT using the Reverse Charge. And the same is true if the supplier is located outside the EU. The Place of Supply remains where the recipient is located.
About Les Howard
Hi, I am a VAT Consultant, working mainly with charities. I am based in Cambridgeshire
I have over 20 years experience in VAT, and am currently also a part-time member of the Tax Tribunals.