4 ms·
(Disclaimer: I am not a lawyer, and all that jazz ;-) But I do know more about VAT than I probably should for my health..) True, but if I want to take VAT numb
by petercooper 12y ago
(Disclaimer: I am not a lawyer, and all that jazz ;-) But I do know more about VAT than I probably should for my health..)
True, but if I want to take VAT numbers I have to be registered for VAT anyway and then do UK quarterly filings.
I don't believe that's true. You have, I assume, been doing both B2B and B2C sales so far, and the law has solely changed in regard to B2C sales on digitally supplied services.
The only new requirement for you to avoid needing to charge VAT should be that you'd need evidence to prove a sale isn't B2C on non-UK EU sales only. For that, all you need is a VAT number in the valid format (HMRC notice 741A section 2.7).
Handily, you do not even need to do any further validation of the VAT number if the VAT that would be ordinarily charged to that customer is cumulatively less than £500 over 3 months (741A section 19.2). (So if you were providing a service of £100/mo, you shouldn't even need to check their VAT number out! :-))
There's definitely stuff & concepts to get your head around with this, but in theory, still accepting B2B sales within Europe could be as simple as collecting, validating the format of, and storing VAT numbers.
If your B2B intra-EU sales are too low to make this worthwhile, of course, then yeah, it makes sense to block them (and in my research, it appears this is legal), but if you're doing several grand's worth, say.. it might be worth considering the above. Good luck whichever way you go! :-)
- adwf 12y agoAh! Thanks very much! Sounds a little more hopeful on the B2B front then.