VAT VAT
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Thread: VAT

  1. #1

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    Default VAT

    Found a contract in Austria. I quoted my rate and mentioend +VAT just to make sure we are on the same page.

    The company has turned around saying they don't charge VAT. So I need to tell them all inclusive rate.

    How would that work?

    The contract only requires few weeks initially in Austria, but rest would be based in the UK working from home.

    Any other tax implications?

    I have tried searching, can't find a similar example.

    I am also already talking to my accountant.

    Thanks

  2. #2

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    Quote Originally Posted by mdhd View Post
    Found a contract in Austria. I quoted my rate and mentioend +VAT just to make sure we are on the same page.

    The company has turned around saying they don't charge VAT. So I need to tell them all inclusive rate.

    How would that work?

    The contract only requires few weeks initially in Austria, but rest would be based in the UK working from home.

    Any other tax implications?

    I have tried searching, can't find a similar example.

    I am also already talking to my accountant.

    Thanks
    Likely to give you a more coherent response that are going to get here in General.

    PS you have already taken the wind out of NLUK's sails.

  3. #3

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    Moved.
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  4. #4

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    Quote Originally Posted by mdhd View Post
    Found a contract in Austria. I quoted my rate and mentioend +VAT just to make sure we are on the same page.

    The company has turned around saying they don't charge VAT. So I need to tell them all inclusive rate.

    How would that work?

    The contract only requires few weeks initially in Austria, but rest would be based in the UK working from home.

    Any other tax implications?

    I have tried searching, can't find a similar example.

    I am also already talking to my accountant.

    Thanks
    Use the Reverse Charge Mechanism.

    The Reverse Charge Mechanism

    You still need to use the Austrian company's VAT number on your invoices.

  5. #5

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    you need to tell them 1.2* the number you first told them

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    Quote Originally Posted by Batcher View Post
    Use the Reverse Charge Mechanism.

    The Reverse Charge Mechanism

    You still need to use the Austrian company's VAT number on your invoices.
    No, the client uses the reverse charge mechanism, not the supplier. For OP, assuming they are supplying professional consultancy services, the supply is simply outside the scope of UK VAT.

    OP simply needs to be satisfied that their client is in business - a VAT number is not strictly necessary (the client might not be VAT registered anyway). If a VAT number cannot be obtained, then some other evidence that they are business (e.g. company details on the contract) should be sufficient.

    OP may also need to submit an EC Sales List - though I have no idea whether or not that will still be necessary post-Brexit.

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    Quote Originally Posted by TheCyclingProgrammer View Post
    No, the client uses the reverse charge mechanism, not the supplier. For OP, assuming they are supplying professional consultancy services, the supply is simply outside the scope of UK VAT.

    OP simply needs to be satisfied that their client is in business - a VAT number is not strictly necessary (the client might not be VAT registered anyway). If a VAT number cannot be obtained, then some other evidence that they are business (e.g. company details on the contract) should be sufficient.

    OP may also need to submit an EC Sales List - though I have no idea whether or not that will still be necessary post-Brexit.
    I must have been doing it wrong then. I always put the client's VAT (or equivalent) number on the invoice and say no VAT charged due to the reverse change mechanism.

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    Quote Originally Posted by Batcher View Post
    I must have been doing it wrong then. I always put the client's VAT (or equivalent) number on the invoice and say no VAT charged due to the reverse change mechanism.
    That isn’t wrong, a VAT number is the default request to verify business status. But you don’t strictly need it so long as you have evidence of B2B.

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    Quote Originally Posted by TheCyclingProgrammer View Post
    OP may also need to submit an EC Sales List - though I have no idea whether or not that will still be necessary post-Brexit.
    This link says, for goods, it wont be required if we leave without deal:
    VAT for businesses if there’s no Brexit deal - GOV.UK
    And also says for Services that:
    The rules around ‘place of supply’ will continue to apply in broadly the same way that they do now, areas of potential change are flagged below.
    Some detail is not yet available but further information will be provided in due course.
    So, some time in the next two weeks then......

  10. #10

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    Yes, VAT on services where the place of supply is in the clients location are unlikely to change at all. EU clients will still account for sales using the reverse charge from UK suppliers just as they currently do from other non EU suppliers.

    As far as I understand an EC sales list is only required of EU based suppliers and there’s no reporting requirement for non EU members so if there’s no deal I imagine it won’t be needed.

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