EC services - VAT

[MeridianWest]

Hi,

I have a client in Canada and I have to send an invoice for services. They have advised that the headquarters are in The Netherlands and they have a VAT number there. Does this go under the EC regulations? Do I need to include it in the EC declaration?

Thanks!

[robbob]

Ok i am presuming B2B general rule applies here

The B2B general rule dictates that the vat is accounted for where the customer belongs so normally if they advise they belong in the Netherlands and provide their vat number that would be ok -

https://www.gov.uk/government/publicati ... b-supplies

6.3 B2B supplies
The B2B general rule for supplies of services is that the supply is made where the customer belongs.

Where the B2B rule applies you should obtain commercial evidence showing that your customer is in business and belongs outside the UK. VAT registration numbers are the best evidence that your EU customer is in business.

HOWEVER unfortunately section 4 of notice 741 then discusses the Establishment most closely connected with the supply - i would recommend reading this section then discuss with your customer to establish whether you are supplying the Netherlands establishment or the Canadian one - if there is any doubt you are probably best to take specific advise from the vat office or suitable vat expert.

Note there are others hanging around here much more able to fully advise in this area than me so take my advise here with a pinch of salt