Please can someone help .... I've just taken on a client who supply IT contractors to Swiss companies.
They have not been charging VAT, which I think is ok. But when it comes to EC Sales List, I'm confused. As Switzerland are not part of the EU but have been advised to treat VAT the same as any other EU country.
Therefore when it comes to HMRC EC Sales List, there is no code for Switzerland suggesting that I don't list these invoices.
If anyone can supply an information I would be grateful !
It's a really confusing part of VAT. As Switzerland are not in the EU they can't go on the ESL, and there isn't a country code anyway so you couldn't add them even if you wanted to.
Any country that is outside of the EU can have goods supplied to it (generally) from here with zero rate VAT, they may then be subject to that countries VAT equivalent when the goods arrive, but that's not your problem as the exporter. You have to keep evidence of what was sent, where it went etc (HMRC have advice on this). With regards to services if the place of supply of your service is not in the EU, then your supply of services is outside the scope of VAT. You don't have to charge EU VAT or include the sale on your VAT Return.
This is a useful link: http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm
and so is this: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1083237299&r.l1=1073858808&r.l2=1083126673&r.l3=1083127480&r.l4=1083127992&r.l5=1083237164&r.s=sc&type=RESOURCES
Hope that helps.
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
