Can I skip the VAT when billing to the UK?


(Gregor Hakkenberg) #1

When I send an invoice to my clients in the Netherlands, I do not have to charge TVA. Something to do with the EU and avoiding the hassle of calculating and reclaiming VAT between members. Does this also count for the UK? I've been doing some translating for Solarcentury (very interesting company by the way if you ever decide to get PV modules) and am sending them my invoice this week. With or without?


(John Bowman) #2

VAT is an end-user tax. It depends whether or not your client is VAT registered (in whatever EU State), if they are you do not need to charge VAT, if they are not you do at the rate of the Country in which your client is resident.


(Alex Thurgood) #3

Ah, so you too, know what it is like ;-) Glad things went OK though.


(Gregor Hakkenberg) #4

I've had a tax inspection last year and passed with flying colours (mainly brown in my private thoughts) for the whole VAT thing. The inspection was prompted by the fact I never pay any TVA and frequently get money back, I guess. But since I'm now starting to charge a UK company I just wanted to make sure I was doing it right.


(Alex Thurgood) #5

Hi Gregor,

Yes, by the sound of it - but did you include the diddly bits I mentioned at the end of your invoice ? Whilst HMRC probably couldn't give a rat's backside about that part (I haven't checked), the French tax office does, and in the event of a tax inspection into your affairs, it will be one of the first things they look for - as it automatically makes you look dodgy if you don't.


(Andrew Hearne) #6

the UK is a full member, you're not the first and you won't be the last to ask that one, Gregor, ther are two exceptions - the euro and shengen, that's all ;-)


(Gregor Hakkenberg) #7

then?


(Gregor Hakkenberg) #8

OK, thanks. I did it right than. I was uncertain wether the UK was full member of the EU, what with the pound and stuff.


(Alex Thurgood) #9

VAT is not generally applicable for taxable services provided within the EU (assuming your invoicee is a taxable person - if in doubt, ask for their EU VAT number). However, your bills need to contain the EU VAT number of the invoicee, and a mention to the effect that VAT is borne by the buyer something like "VAT REVERSE CHARGE" and in French the obligatory mention of the relevant applicable article of French Tax law.

TVA : AUTO-LIQUIDATION

Exonération de TVA, article 262 ter, I du Code général des impôts et autoliquidation

See also:

http://www.tvacalc.com/info/16/TVA-et-Facture-mentions-obligatoires...

and this document

and here


(Andrew Hearne) #10

Sorry, Gregor, forgot it's BtoB, it ought to apply to the UK too but I'm not sure!


(Gregor Hakkenberg) #11

This concerns services to consumers who don't have a VAT number. You have to charge them with TVA. The VAT to businesses is relayed, as long as you mention the TVA-number of your client on your invoice.


(Andrew Hearne) #12

I thought VAT numbers are European wide now to avoid that problem, Gregor...

Les taux de TVA en Europe au 1er Mars 2015

Changement de TVA sur les services dématérialisés en Europe

Depuis le 1er janvier 2015, les prestations de services délivrés par voie électronique sont imposables au taux de TVA en vigueur dans l’État membre où le consommateur est domicilié. TVA des services électroniques dans L'UE au 1er Janvier 2015

Sounds like a can of worms to me :-(

I (my accountant) have to deal with 0%, 5.5% and 20% TVA but at least it's all here in France!