VAT is such a minefield and I'm getting conflicting advice on this one!
I'm invoicing a customer in Spain. Do I apply VAT at 20% to the invoice? If not, what do I code it as? In Liberty Accounts the options are 20%, None, Out of Scope. I thought Out of Scope was for transactions not in the VAT system at all.
It depends on the nature of the service(s) being supplied. Once that is established, the 'place of supply' rules will determine where the supply is deemed to take place, and then what rate is applicable.
If the customer can give you a valid VAT number you don't have to charge VAT otherwise you do. This is because all sales within the EU (any type) the supply is now considered to be in the UK now. Rules changed in 2010
There seems to be quite a few of these EU VAT questions at the moment.
Sorry to disagree; some sales are deemed to take place in a specific Member State, and VAT will be chargeable at an appropriate rate, irrespective of the status of the recipient. See Notice 741A, para 18.2.
Sorry to disagree; some sales are deemed to take place in a specific Member State, and VAT will be chargeable at an appropriate rate, irrespective of the status of the recipient. See Notice 741A, para 18.2.
Notice 741a para 18.2 is about the reverse charge - so as I said before, if your customer can supply you with a VAT number you don't charge VAT - this is because as the notice says your customer will apply the reverse charge as if they have a VAT number you apply the B2B general rule. No VAT number then apply the B2C general rule,
Notice 741a came into force January 2010.
2.4.1 The B2B general rule
The B2B general rule for supplies of services is that the supply is made where the customer belongs
2.4.2 The B2C general rule
The B2C general rule for supplies of services is that the supply is made where the supplier belongs
thanks for all the replies. Once I'd validated the VAT number the accounts system defaulted to zero rated VAT. I also have a customer in Switzerland, so do I also have to validate their VAT number to zero rate their VAT? If so, how do you validate a VAT number from outside the EU?
