UK VAT reg. subject supply Services to EC unregistered subject

[stefanik]

Hi there,

I`m confused about one thing. UK company is providing consulting services for business purposes to EC company. The EC company is not VAT registered. Shall the UK company invoice provided services at zero rate or standard rate of VAT purposes? What is the place of supply, UK or country of EC company residency?

[paultaylor@vatease.c]

If you are providing consultancy services to an EU business for its business purpose the services are reverse charge services regardless of whether or not the business is registered for VAT. The place of supply is deemed to be the country where the customer is resident.

The invoice should show no VAT as the supply is outside the scope of UK VAT.

Obviously, without an EU VAT number you will need to have other evidence that your customer is in business to provide to HM C&E should they request it.

Regards

Paul Taylor
http://www.vatease.co.uk/