we have a subsidiary (we are also a sub) in Romania, if we raise an invoice to Romania, should we use the reverse charge category? or should we ignore VAT all together because we are in the same group?
Hi Stuart Sorry for not responding earlier, I really couldn't be bothered with the site, but then felt bad cos nobody else had bothered to respond to your query.
Groups would only not charge inter group VAT if you are part of a VAT group, which you can't be as all the same companies are not within the UK (as I understand it)
So then it depends on what it is you are invoicing for? Is it staff/directors time? If so, again only my understanding, I've not verified this, but the answer is no, it's not vatable in your case see the Vat guide, think it's 700/24.
Is it a normal taxable supply? ( Even if it's normally zero). Can you give us an idea of what the supply is for?
-- Edited by Cheshire on Friday 28th of October 2016 09:28:17 AM
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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
Thanks Joanne,
So the entity in the UK is only a cost plus entity until next year, So I assume I would code it to reverse charge, but I will look to see what the other accountants that it was outsourced too do.
