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Am I correct in thinking that everything carries on as before if you're a UK based Ltd, VAT registered and the only sales you make to EC based clients are to en
by corford 12y ago
Am I correct in thinking that everything carries on as before if you're a UK based Ltd, VAT registered and the only sales you make to EC based clients are to entities with a VAT number? Basically, the place of supply remains the UK and you report EC sales in your quarterly EC sales list as before?
- hermitcrab 12y agoI believe that is correct (but I am not an accountant). But you need to consider what might happen if someone without a VAT number wants to buy from you. Are you just going to refuse? Or perhaps direct them to a reseller?
- tehwalrus 12y agoI'm not sure - if you are selling "software as a service" or any other hands-off digital product to (VAT-registered or not) companies in another EU country, then I think you must bill them at their local VAT rate and (possibly) pay that rate to their government's tax collectors (assuming you're above their country's VAT-registered threshold.) I may have read it wrong, though, I'm not an accountant.
- hermitcrab 12y agoIf they are a VAT registered business, the place of supply remains that of the vendor. This hasn't changed. ( So you don't charge them VAT under EU reverse charge.)
- theallan 12y agoAre you sure about that? My understand of it was that the place of supply depends on what is being sold and not on the VAT registration status of either party. Digital goods would have the place of supply defined by where the customer is. Services have it defined by where the seller is. If both you and the customer are VAT registered, then you can zero rate the VAT, but the rate (if it were applied) could be different (based on what you are selling).