I have a client who supplies services to Singapore so normally we do not add VAT to the invoice. This time he is supplying the service for a UK Based company, but he will be out in Singapore to deliver the service - am I correct in understanding that we still do not add VAT to the invoice as long as we can supply proof that the 'place of supply' is abroad?
Thanks in advance
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I have a client who supplies services to Singapore so normally we do not add VAT to the invoice. This time he is supplying the service for a UK Based company, but he will be out in Singapore to deliver the service - am I correct in understanding that we still do not add VAT to the invoice as long as we can supply proof that the 'place of supply' is abroad?
Thanks in advance
Hi Cheshire,
Place of supply is where your customer is based as the customer here a business.
Why do you think there should not be any VAT? Even if your client is physically n Singapore when delivering the service you still should use rules of place of belonging.
Its because I keep getting different answers from my clients Accountant and the VAT people. For example - when he did some work in Germany for a Dutch company but the invoice was sent to a UK intermediary (sort of booking company/agent for want of a fuller explanation), HMRC said we didnt need to add VAT as we could prove the work was not in fact for the UK company. Another - he did filming here but for an Irish company - again no VAT.
Fortunately for this one Ive just found out that we are providing the service and therefore invoicing the Singapore arm of a Bank, rather than the UK company.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I just wish HMRC would make it clearer in their guides cos Im just as confused as ever!
Fair enough. I personally don't think that the rules are confusing. I think we get confused when we don't have all the facts about a particular transaction in question. In two cases you discussed earlier the services were provided to a client based in another EU member state, therefore VAT is subject reverse charge.
In Singapore case the services are out of scope of UK VAT.
