My client is an agent for a number of photographers who do a lot of shoots in Europe and US. In effect they are supplying a service as opposed to delivering goods, do I still need to produce an EC sales list for her company?
__________________
Tayo Richards www.admin2day.com admin for today's business
No, you do not include service on your EC sales list, this is for goods only.
But you must make sure that the VAT is accounted for correctly, in many cases in Europe, the customer is required to operate the reverse charge system for VAT. My client is currently supplying a service in Germany and we are operating the reverse charge system but a footnote must be added on the invoice stating this.
At the moment, I believe it depends on the country and the type of service provided but the legislation changes in January 2010 where most countries will operate the reverse charge system.
Have a look at HMRc place of supply rules or phone them, they were very helpful to me recently on this subject.
Thanks Gerry. I have been trying to get in touch with HMRC for the past few days and keep on getting the message that they are experiencing a high level of calls - I have since emailed and still nothing.
__________________
Tayo Richards www.admin2day.com admin for today's business
Does your client have an accountant that does their year end stuff? I have a number of accountants that I call upon if I need some advice and they are always happy to oblige/send me down the route to fnd out etc
HMRC are not usually much help in explaining things apart from look at Notice X and make up your own mind!
I agree with Gerry, as I too invoice a client in Ireland and have to note on the invoice about the reverse charge issue. Interstingly, don't forget that if someone invoices you, then you will need to carry out the reverse charge journals.
