VAT and working Offshore

[parviz]

Lambs,Thanks for the advice.The company that subcontracts my services say they don't have a problem with me issueing a VAT only receipt so i can pay back the VAT that i'm due,if the advice is wrong.
As i am offshore i have no way of quoting the actual literature, as i did say that i am working in UK waters, to which the specialist quoted the legislation about working on oil and gas vessels/rigs outwith the 12 mile land limit.
This is really starting to stress me out as i asked to become VAT registered, was told i didn't need to be,but have a nagging doubt that they are the specialist is wrong.
I mean, if i carry on and was found to have been charging VAT, my family and i would be out on the street as there would be no way to pay that sort of money back.Very worried at the minute TBH.

[Lambs]

P,

Just contact HMRC and tell them what you do, what you've been advised, and ask them to confirm. As we've pretty much all said, there's a good chance that UK VAT isn't chargeable. If, having given them full details of your circumstances, you get advice from them in writing, and you subsequently follow that advice, then you will be entirely justified in following that advice.

See HMRC VAT Notice 741A - Place of Supply of Services - in particular 6.3 - 6.5. I think G already mentioned that, if you are working on equipment that's a fixture in an oil rig, then it's a supply relating to land and the supply is in all likelihood where the land is situate. Refer to 2.11 - the UK is up to 12 nautical miles from the coastline of GB etc.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_PROD1_029955&propertyType=document

BUT please do be aware that, depending on where you are, the land may well be in the territory of another of the EC member states, and you may be liable to register for VAT in that other member state, depending on that state's rules.

Regards,

Lambs

[Generix]

Refer to 2.11 - the UK is up to 12 nautical miles from the coastline of GB etc.

I had a feeling it was nauticlal miles I have had many an argument about that point and wished I'd known it was in the public notice!!!

In any case, you can register voluntarily IF you INTEND to make taxable supplies in the future.

In the meantime you should not be charging VAT if your supply is a land related service and the oil rig is 12 naut miles offshore.