Am I correct in thinking that if a UK company is Vat registered and sells services to Germany there is no vat ? And do I put the EU sales in box 8 of the Vat return and fill out an EC sales list?
It's a while since I did this so need someone to clarify for me
There is only "no vat" if the German customer is VAT registered and has supplied their VAT registration number to the UK supplier.
If that is so, while there is "no vat" on the amount you charge the customer, strictly speaking there is still VAT; yes, this is where you have to follow the EC sales list procedure to correctly account for it*
If that is not so (the German customer isn't VAT registered) then you charge VAT as usual.
(Note also the new place of supply rules if this is a 'digitial service' - in this case, you need to be charging the German rate of VAT and either registering for VAT in Germany or signing up for the VAT MOSS scheme in the UK).
* This basically allows the UK tax office to say to the German tax office "I say, old chaps, you owe us £x/EURy for the supply of this service from our UK blokey to your German blokey. Would you like some tea and scones? By the way, do you remember the war, what what?"
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
As Vince says - it depends on the status of the entity in Germany and the type of service being sold (ie Moss related or not/care re place of supply re broadcasting etc, reverse charge/checking VAT numbers).
Also - just wondering - is box 8 for goods or does it include services? Cant recall.
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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
Filling in box 8
Box 8 Total value of all supplies of goods and related costs, excluding any VAT, to other EC Member States
do not include in box 8 the value of any of the following:
separate supplies of services, such as legal or financial services
But yes to ECSales list
__________________
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
