I'm sure similar questions have been asked lots of times previously but after searching the forum for over an hour, I can't quite find the answers I'm looking for.
I'm due to meet with a new client [Ltd co] that is based in UK but the service his company provides is manly to businesses based outside the UK but still in the EU
The service is security based and from what I can ascertain the company would arrange for security staff to be sent to various EU countries as event security for different events.
I have a couple of questions relating to this that i'm trying to get my head around before meeting client, Ive been on the HMRC site, looked through text books but it's not sinking in, perhaps someone can simplify if poss:
1. If the Business that my potential new client is supplying his service to is VAT registered in their own country, how should potential new client be raising his Sales invoices?
2. If the Business that my potential new client is supplying his service to, Isnt VAT registered in their own country, how should potential new client be raising his Sales invoices?
Should he be adding VAT as normal, no VAT added? If no VAT would this be Zero rated or outside of scope when completing his VAT return.
3. Would he be required to summit an EU Sales list or is that just for goods supplied?
The director of the company does quite a lot of traveling as part of his job, meeting potential clients and sometimes over seeing staff at the events, while abroad whatever he purchases for example hotel accommodation, cost of using internet, car hire, I assume none of this can be claimed on his VAT return as it has nothing to do with UK vat, if Ive got that correct, then should these overseas expenses be classed as zero rated items?
The 'basic rule' is that services are supplied where the recipient belongs. This applies where the recipient is a business in another EU Member State. The Sales Invoice issued by the UK supplier must show a description of the services being provided, and must include the recipient company's VAT number, including the country code that applies. The supplier therefore does NOT charge UK VAT. The supplier will account for Acquisition Tax in his home MS. If the customer is not registered but is in business, then the same rules apply (Notice 741, para 2.7). From Jan 2010, the EC Sales List is required to show supplies of services made to EU customers. These are always for calendar quarters, irrespective of the supplier's own VAT 'stagger.' Where the director incurs expenses in other MS, he can make a claim for that VAT. Specialist companies will do that for him, for a fee, usually a percentage.
