VAT Charges

Question posted by Danielle Spencer, on behalf of Adshead Ratcliffe & CO Ltd in DE56

If we have sent goods to EU or non-EU customer on behalf of a UK Buyer do we add VAT to the invoice sent to our UK Buyer?

Thank you

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Mike Hunter, on behalf of betterlanguages.com Ltd. in Nottingham.

Hi Danielle, if I understand correctly you have invoiced a UK client, in which case "place of supply" is likely to be the UK for VAT purposes, and hence VAT would be chargeable at the UK applicable rate. We export services rather than goods, but we've recently had a situation where we were dealing with a customer in Russia (so outside the scope of UK VAT), the client decided that in future their UK customer would pay, hence we then had to charge VAT, as the new end customer is a UK company.

This is a complex area of tax law however, and I would suggest you get professional advice (I don't profess to be a tax expert, and this reply is given in good faith). Hope this is helpful. Regards Mike

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