Euros and VAT

[cablarnshowntone]

Hi all,

Quick question, does anyone know how to charge for VAT when being paid in Euros? Is it a somple conversion or are there any quirks?

Thanks in advance

[tomtomagain]

Hi all,

Quick question, does anyone know how to charge for VAT when being paid in Euros? Is it a somple conversion or are there any quirks?

Thanks in advance

Are you selling B2C or B2B?

If it's B2B then you just need to get the customers VAT number and then you don't need to charge VAT.

You do have to fill in and submit an extra from - Value Added Tax EC Sales List - to HMRC though.

[VectraMan]

A company from elsewhere in the EU or a UK company paying you in Euros for some odd reason? Because that would be different. I think.

[stek]

Hi all,

Quick question, does anyone know how to charge for VAT when being paid in Euros? Is it a somple conversion or are there any quirks?

Thanks in advance

Have you registered on the EC Sales List on Gov. Gateway?

[cablarnshowntone]

I'm a UK Ltd Company contractor and have accepted a contract with K2 Partnering Solutions in Germany for a contract with IBM client serivces.

[stek]

I'm a UK Ltd Company contractor and have accepted a contract with K2 Partnering Solutions in Germany for a contract with IBM client serivces.

If the rate is not stupendous, the Euro-STG conversion will kill you on rate and service costs, if you use your UK Ltd you don't charge VAT but you need to account for it with HMRC via EC Sales List, using your agencies VAT number.

Speak to your account, it does seem you are slightly out of your depth here, let him sort it....

[cablarnshowntone]

If the rate is not stupendous, the Euro-STG conversion will kill you on rate and service costs, if you use your UK Ltd you don't charge VAT but you need to account for it with HMRC via EC Sales List, using your agencies VAT number.

Speak to your account, it does seem you are slightly out of your depth here, let him sort it....

I have asked my Accountant, he has thus far evaded the question. I will hound him again tomorrow. Pretty sure you're right though regarding the agent paying it.

My rate in EUR accounts for the conversion. I'm happy with the role as i'll be WFH 98% of the time.

[tomtomagain]

Might all be different next week!

[cablarnshowntone]

Accountant said the following -

"As the company is based in Germany, you will not charge VAT on the invoices, simply just charge your daily rate.


We will notify HMRC of these amounts when we prepare the VAT return as we will detail on the return sales made to Germany that are not VAT inclusive."

Nothing will change next week, don't be silly. It will take years.

[Boo]

Quick question, does anyone know how to charge for VAT when being paid in Euros? Is it a somple conversion or are there any quirks?

There are quirks :

If YourCo and AgencyCo are registered in different countries, and the supply is bespoke software / services then the supply is deemed to be made in the destination (AgencyCo's) country. In this case VAT is "reverse charged" to the Agency's VAT number and you do not add VAT to your invoice but instead a phrase like :

Levy of VAT reverse charged to AgencyCo VAT Ref. CCxxxxxxxxxx in accordance with Article 196 of EU Directive 2006/112/EC on the common system of value added tax.

Where CCxxxxxxxxxx is the AgencyCo's VAT Number, which they will tell you if you ask them.

If YourCo and AgencyCo are registered in the same country then you need to convert the VAT amount to GBP on the invoice, quoting the exchange rate current at the time of issue. AIUI, this is the VAT AgencyCo will pay over to HMRC.

Note that if you are on cash accounting the VAT rate you will pay over is the 20% of the amount YourCo ends up being paid at the exchange rate that applies on the day of payment, not the amount on the invoice.

The exchange rates you must use must lie within those shown in the downloads referred to by the section "HMRC Exchange Rates" from their page here.

Hth,

Boo