Remote work for EU client. Is it digital services? Remote work for EU client. Is it digital services?
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  1. #1

    More time posting than coding


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    Default Remote work for EU client. Is it digital services?

    I spoke with my accountant and they are not sure.
    Situation. I will be providing consultancy in form of advice to a client in EU.
    They do something IT and need best practices, so I will talk them through via phone and skype. Question is do I charge VAT on their invoices?
    That is besides the threshold of £8818, I am not sure if it will be passed, but it might be.

    The definition says:
    Code:
    Defining digital services
    Telecommunications services
    
    This means transmission of signals of any nature by wire, optical, electromagnetic or other system and includes:
    
        fixed and mobile telephone services for the transmission and switching of voice, data and video, including telephone services with an imaging component, otherwise known as videophone services
        telephone services given through the internet, including Voice over Internet Protocol (VoIP)
        voice mail, call waiting, call forwarding, caller identification, 3-way calling and other call management services
        paging services
        access to the internet
    
    It does not cover services just given over the telephone, such as call centre help desk services.
    Electronically supplied services
    
    These rules only apply to e-services that you supply electronically and includes things like:
    
        supplies of images or text, such as photos, screensavers, e-books and other digitised documents, for example, PDF files
        supplies of music, films and games, including games of chance and gambling games, and programmes on demand
        online magazines
        website supply or web hosting services
        distance maintenance of programmes and equipment
        supplies of software and software updates
        advertising space on a website
    
    Sales not affected by these rules
    
    Using the internet, or some electronic means of communication, just to communicate or facilitate trading does not always mean that a business is supplying e-services. Using the internet for the following does not count:
    It doesnt fall under any of those, but still not sure.
    What do you think?

  2. #2

    More time posting than coding


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    On a second glance there is this


    Using the internet, or some electronic means of communication, just to communicate or facilitate trading does not always mean that a business is supplying e-services. Using the internet for the following does not count:

    services of lawyers and financial consultants who advise clients through email


    educational or professional courses, where the content is delivered by a teacher over the internet or an electronic network (in other words, using a remote link)
    And while it is not 100% match is the closest thing to what I will be doing. Or if it is easier I can structure it as course.

    The point is really to not get bogged down in admin (VAT MOSS) for something very short term, not that I care I will make them pay 20% more.

  3. #3

    Contractor Among Contractors


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    If this is bespoke consultancy to one client, then it won't fall under those rules.

    The digital services stuff is more for "produce once, sell to many" situations. Eg you write an app/ebook/video which you then sell the same thing directly to many different customers.

    It sounds like you're just providing a normal service. Assuming your client is in the EU and is a business registered for VAT wherever they are, the place of supply is deemed to be where the client is. From your perspective you should get their local VAT number, and don't charge them UK VAT. From their perspective they'll deal with it via the reverse charge mechanism, which basically means pretend you charged them their local VAT rate, and pretend to reclaim it.

  4. #4

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    No, it is consultancy services.

    Furthermore, the "VAT MOSS" rules for the supply of digitally supplied services (e.g. software, downloads etc.) only applies to B2C supplies, not B2B supplies.

    As long as you are satisfied that your customer is business, then as Maslin says, the place of supply will be where the customer belongs (although they do not need to be VAT registered - if they do not have a VAT number you should keep alternative supporting evidence of their business status) and as such it will be outside the scope of UK VAT.

    If they are EU-based, you should include a notice on your invoice stating that no VAT has been charged and that the reverse charge applies - the customer will account for VAT at their end. If they are outside the EU you don't need to mention VAT at all.

  5. #5

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    Thanks.
    Yes, they are a company in the EU.
    Yes, they are VAT ge/ed in their country.

    I will be providing the service remotely from UK. Does that change anything of the above?

  6. #6

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    Quote Originally Posted by pscont View Post
    Thanks.
    Yes, they are a company in the EU.
    Yes, they are VAT ge/ed in their country.

    I will be providing the service remotely from UK. Does that change anything of the above?
    No.

  7. #7

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by pscont View Post
    I spoke with my accountant and they are not sure.
    Who is your accountant?

    Your last few threads of crackpot ideas to commit fraud make money craftily, you were still trying to do your accounts yourself. Just wondering what changed and who is doing the books for you now.
    Strong and Stable Moderation

  8. #8

    I live on CUK

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    Quote Originally Posted by WTFH View Post
    Who is your accountant?

    Your last few threads of crackpot ideas to commit fraud make money craftily, you were still trying to do your accounts yourself. Just wondering what changed and who is doing the books for you now.
    Let's just say a certain respected operation in the Dutch Antilles has extended what it looks to call its family of contractors.
    Quote Originally Posted by Bean
    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

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