overseas landlords and VAT

[scooterscot]

Why should an EU VAT registered entity not resident in the UK pay VAT on services delivered in the Uk?

The thing is I have services and products supplied to me from the UK to Germany, that are VAT exempt. The only time this does not apply is with the agents who manage my let property back in the UK.

[Martin at NixonWilliams]

Why should an EU VAT registered entity not resident in the UK pay VAT on services delivered in the Uk?

The thing is I have services and products supplied to me from the UK to Germany, that are VAT exempt. The only time this does not apply is with the agents who manage my let property back in the UK.

Hi Scooterscot,

It shouldn't! If the supply is for services, then it is the place where the customer belongs that is relevant for VAT purposes. The place of supply would therefore be the location of the EU business and so the supply would be outside the scope of UK VAT - though the EU business may have to account for this on their VAT return using the reverse charge mechanism.

You mention that you are supplied with services and products - note that the two are very different for VAT purposes.

I hope this helps - If I have misunderstood your question please let me know.

Martin

[scooterscot]

Thanks Martin.

The services are provided to me personally and for this reason I'm told VAT shall be charged. Nonetheless other services or products I purchase from the UK my VAT is returned.

I don't understand what separates the two, and neither does HMRC when I called them on phone.

[Martin at NixonWilliams]

Thanks Martin.

The services are provided to me personally and for this reason I'm told VAT shall be charged. Nonetheless other services or products I purchase from the UK my VAT is returned.

I don't understand what separates the two, and neither does HMRC when I called them on phone.

I'm sorry, I think I may have misunderstood your initial query.

So the services are provided by an EU member state to you personally (not your business), and you are in the UK? Is it UK VAT that is being charged or that of the member state?

I'm afraid there is very little chance of getting through to anybody at HMRC who is knowledgeable enough to deal with this type of query!

Martin