UK VAT When paying invoice from Gibraltar Corp? UK VAT When paying invoice from Gibraltar Corp?
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  1. #1

    Nervous Newbie


    Join Date
    Apr 2017
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    Default UK VAT When paying invoice from Gibraltar Corp?

    Hey everyone...

    I am quite confused! When my UK company receives an invoice from a company in Gibraltar,
    which provides consultancy and marketing services, I am required to pay/account for UK VAT?
    It is my understanding that although Gibraltar is in the EU, it is outside the scope of VAT within
    the UK and EU (just like the US for example).

    Any advice is greatly appreciated.

    My research:

    1. https://www.gov.uk/government/public...ly-of-services

    "2.5 UK territorial limits and the VAT territory of the EU
    The UK consists of Great Britain, Northern Ireland and the waters within 12 nautical miles of their coastlines. The Isle of Man is treated as part of the UK for VAT purposes and VAT is chargeable in the Isle of Man (under Manx Law which generally parallels UK legislation). There’s no VAT in the Channel Islands or Gibraltar, which are outside the UK and EU for VAT purposes."


    2. https://www.gov.uk/guidance/vat-eu-c...ther-languages

    The following are not part of the EU VAT area, sales to these countries mustn’t be included on your ESL:

    Andorra
    The Channel Islands
    Gibraltar
    Mount Athos
    San Marino
    Vatican City

    Thank you.

  2. #2

    Super poster


    Join Date
    Jan 2009
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    Near London, UK
    Posts
    4,021

    Default

    If you receive a service from Gibraltar then you are required to account for VAT under the reverse charge rules, just the same as any other foreign supplier. If the supplier is from a country in the EU VAT zone then you should let them know your VAT number as evidence that it’s a B2B transaction so they don’t have to charge you local VAT.

  3. #3

    Fingers like lightning


    Join Date
    Nov 2015
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    Default

    Quote Originally Posted by TheCyclingProgrammer View Post
    If you receive a service from Gibraltar then you are required to account for VAT under the reverse charge rules, just the same as any other foreign supplier. If the supplier is from a country in the EU VAT zone then you should let them know your VAT number as evidence that it’s a B2B transaction so they don’t have to charge you local VAT.
    Just to add to this - as VAT registered in an EU country you have to self-account for VAT on purchases from a supplier in any other country, whether within the EU or not. In practice, it is just a bookkeeping entry - no money is actually payable. You record the invoice from the Gibraltar supplier just like any invoice from another EU supplier. There is no difference. If the non-EU supplier (e.g. Gibraltar) is registered for VAT in the EU (such as under the MOSS scheme) then you should give them your VAT id and they should not charge VAT (as you will do it for yourself instead).

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