Clarification needed re selling services to EU governments without VAT numbers

Question

My VAT related questions are focused on services to EU governments who do not have a VAT government where the service is outside the EU but the invoicing is to a non-VAT numbered government department in a EU government….very confusing even for HMRC staff….any clarification?

This question was asked during our VAT Fundamentals webinar. You can watch the webinar at http://opentoexport.com/info/webinars/#VAT_fundamentals

Answer

The VAT treatment depends on the type of service provided and the status of the customer. In order to determine the place of supply using the general rule it is important to determine whether the customer is a relevant business customer (B2B). Customers that have both business and non-business activities, such as government bodies, are treated as being in business for all activities if they are a relevant business person. Where the customer is in business but outside the EC or is not VAT registered in their Member State, alternative evidence of their business status will be acceptable, such as certificates from fiscal authorities, business letterheads or other commercial documents indicating the nature of the customer’s activities. Where no such evidence is provided, the transaction should be treated as B2C (Business to Consumer).

VAT Notice 741A: place of supply of services refers

https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services

HM Revenue & Customs

Customs International Trade & Excise

www.hmrc.gov.uk/contactus

Answer

The VAT treatment depends on the type of service provided and the status of the customer. In order to determine the place of supply using the general rule it is important to determine whether the customer is a relevant business customer (B2B). Customers that have both business and non-business activities, such as government bodies, are treated as being in business for all activities if they are a relevant business person. Where the customer is in business but outside the EC or is not VAT registered in their Member State, alternative evidence of their business status will be acceptable, such as certificates from fiscal authorities, business letterheads or other commercial documents indicating the nature of the customer’s activities. Where no such evidence is provided, the transaction should be treated as B2C (Business to Consumer).

VAT Notice 741A: place of supply of services refers

https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services

HM Revenue & Customs

Customs International Trade & Excise

www.hmrc.gov.uk/contactus

Answer

The VAT treatment depends on the type of service provided and the status of the customer. In order to determine the place of supply using the general rule it is important to determine whether the customer is a relevant business customer (B2B). Customers that have both business and non-business activities, such as government bodies, are treated as being in business for all activities if they are a relevant business person. Where the customer is in business but outside the EC or is not VAT registered in their Member State, alternative evidence of their business status will be acceptable, such as certificates from fiscal authorities, business letterheads or other commercial documents indicating the nature of the customer’s activities. Where no such evidence is provided, the transaction should be treated as B2C (Business to Consumer).

VAT Notice 741A: place of supply of services refers

https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services

HM Revenue & Customs

Customs International Trade & Excise

www.hmrc.gov.uk/contactus

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