Ok, just when I think I have my head around VAT outside the UK, I have a wobble and lose the plot again!
Here's what (I think) I know...
VAT on goods to EU - charge VAT (T1 on sage) until given a VAT number, then charge no VAT and do an EC sales list each quarter (T4 on Sage)
VAT on services to EU - suddenly lost it! I thought it was as above, but because it was services, not goods, there was no EC sales list needed (T22 on sage).
But, then I think.. do the services come under Reverse Charge? The only time I have seen reverse charge so far, is when its charged by a supplier to me, from outside the EU.
I am sure you all know what HMRC website is like.. yeesh! It took me hours to even work out how to account for RCM, when I first encountered it, and I've just never had to think about it from a sales point of view before.. so I am curious, in case it pops up in the future
If anyone has the simplistic idiots guide, Id love to hear...
1st of all, since 2010 EC sales list is required to be filed for supply of services as well as for supply of goods.
2. When you, as a UK VAT registered business, receive services from outside EU, this is outside of scope of UK VAT, not subject to RC.
3. When you receive services from inside the EU, from a VAT registered business, you account for output as well as input VAT.
Example: services provided to you 1200 EUR , say this translates into £1000. The invoice should not include any VAT amount, if it does, you should speak to your supplier.
Your entries:
Dr P&L 1000 Cr supplier 1000
Dr Input VAT 200 Cr output VAT 200
4. Supplying services to a VAT registered business in EU is treated under RCM for VAT purposes, which means that now you don't account for the VAT, but your invoice states that the services are subject to RC for VAT purposes, and this will indicate to your customer that they have to account for the VAT.
This is the general rule. There are 6 exceptions, which you probably are aware of.
