How should sales commission invoices between two B2B european businesses be treated on the ECSL?

Question

How should sales commission invoices between two B2B european businesses be treated on the ECSL? Do we need to report it on RCSL instead?

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

Answer

If you mean a supply of services, you should complete an ESL (EC Sales List) if you make supplies of services subject to the reverse charge in your customer’s Member State. VAT Notice 741A – Place of supply of services, section 18 clarifies what these services are. https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services

RCSLs only apply for supplies of mobile phones or computer chips between UK taxable persons. The VAT reverse charge procedure is an anti-fraud measure designed to counter criminal attacks on the UK VAT system by means of sophisticated fraud. It is not to be confused with the aforementioned reverse charge for intra community acquisitions. VAT Notice 735 – VAT domestic reverse charge on specified goods and services refers.

https://www.gov.uk/government/publications/vat-notice-735-vat-reverse-charge-on-specified-goods-and-services

HM Revenue & Customs

Customs International Trade & Excise

www.hmrc.gov.uk/contactus

Answer

If you mean a supply of services, you should complete an ESL (EC Sales List) if you make supplies of services subject to the reverse charge in your customer’s Member State. VAT Notice 741A – Place of supply of services, section 18 clarifies what these services are. https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services

RCSLs only apply for supplies of mobile phones or computer chips between UK taxable persons. The VAT reverse charge procedure is an anti-fraud measure designed to counter criminal attacks on the UK VAT system by means of sophisticated fraud. It is not to be confused with the aforementioned reverse charge for intra community acquisitions. VAT Notice 735 – VAT domestic reverse charge on specified goods and services refers.

https://www.gov.uk/government/publications/vat-notice-735-vat-reverse-charge-on-specified-goods-and-services

HM Revenue & Customs

Customs International Trade & Excise

www.hmrc.gov.uk/contactus

Answer

If you mean a supply of services, you should complete an ESL (EC Sales List) if you make supplies of services subject to the reverse charge in your customer’s Member State. VAT Notice 741A – Place of supply of services, section 18 clarifies what these services are. https://www.gov.uk/government/publications/vat-notice-741a-place-of-supply-of-services

RCSLs only apply for supplies of mobile phones or computer chips between UK taxable persons. The VAT reverse charge procedure is an anti-fraud measure designed to counter criminal attacks on the UK VAT system by means of sophisticated fraud. It is not to be confused with the aforementioned reverse charge for intra community acquisitions. VAT Notice 735 – VAT domestic reverse charge on specified goods and services refers.

https://www.gov.uk/government/publications/vat-notice-735-vat-reverse-charge-on-specified-goods-and-services

HM Revenue & Customs

Customs International Trade & Excise

www.hmrc.gov.uk/contactus

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