Hi all,
Long time lurker, first time poster.
I'm a freelancer based in the UK with a UK based limited company and registered for VAT. I'm on the VAT Flat Rate Scheme. I provide technical consulting services on sustainability. Most of my work is analytics, e.g. Excel, data, coding.
I had originally planned to only sell in the UK but have been approached by a large company in the Netherlands, who are registered for VAT. I believe I'm correct in thinking that the place of supply is the Netherlands (I've satisfied myself that I don't sell anything that could be an 'electronically supplied service'*, but I don't think that this would affect matters anyway) - therefore, the first conclusion is that UK VAT charges do not apply.** These are outside the scope of UK VAT and therefore I don't include them on my flat rate turnover.*** (see sec 6.4).
I understand the logical conclusion of this to be that I issue an invoice with my & the customer's VAT number on it, set VAT as 0% and the customer has the reverse charging rules apply to them. Because VAT is 0%, I don't need to worry about paying VAT to my customer (and then recovering it from HMRC).**** (under section Services to EU business (VAT registered))
Is this right?
This leads to an interesting situation where I my VAT FRS bill is lowered by the fact that I'm supplying to EU based organisations, but then again I suppose I'm not getting the advantage of charging them VAT either which would normally be 'skimmed off' under FRS if I were supplying in the UK.
*https://www.gov.uk/government/public...cally-supplied
**Do I charge VAT when selling services to overseas client? | Chris Maslin's blog
***https://www.gov.uk/government/public...esses#section6
****Help. I don't understand EU VAT! - KF Accounting Services
Long time lurker, first time poster.
I'm a freelancer based in the UK with a UK based limited company and registered for VAT. I'm on the VAT Flat Rate Scheme. I provide technical consulting services on sustainability. Most of my work is analytics, e.g. Excel, data, coding.
I had originally planned to only sell in the UK but have been approached by a large company in the Netherlands, who are registered for VAT. I believe I'm correct in thinking that the place of supply is the Netherlands (I've satisfied myself that I don't sell anything that could be an 'electronically supplied service'*, but I don't think that this would affect matters anyway) - therefore, the first conclusion is that UK VAT charges do not apply.** These are outside the scope of UK VAT and therefore I don't include them on my flat rate turnover.*** (see sec 6.4).
I understand the logical conclusion of this to be that I issue an invoice with my & the customer's VAT number on it, set VAT as 0% and the customer has the reverse charging rules apply to them. Because VAT is 0%, I don't need to worry about paying VAT to my customer (and then recovering it from HMRC).**** (under section Services to EU business (VAT registered))
Is this right?
This leads to an interesting situation where I my VAT FRS bill is lowered by the fact that I'm supplying to EU based organisations, but then again I suppose I'm not getting the advantage of charging them VAT either which would normally be 'skimmed off' under FRS if I were supplying in the UK.
*https://www.gov.uk/government/public...cally-supplied
**Do I charge VAT when selling services to overseas client? | Chris Maslin's blog
***https://www.gov.uk/government/public...esses#section6
****Help. I don't understand EU VAT! - KF Accounting Services
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