VAT and selling services to EU-based customers

[SK75]

Hello,

I am a sole trader, based in the UK, supplying services (translations) to French businesses and consumers. I am not registered for VAT in the UK as I am under the threshold for VAT registration. I am also under the threshold for French VAT (33.900 €). I am finding it impossible to work out what are my exact obligations with regard to directive 2006/112/EC and French customers. Do I need to register for VAT in France, or fill out a Déclaration Européene des services)? Would I simply need to put down on my invoices a reference to the reverse charge, e.g. ‘autoliquidation’ (exonération selon l’article 283-2 du CGI ou article 44 de la directive 2008/8 du 12 février 2008.'

If anyone can advise, I'd be very grateful.
Thanks!

Stephen.

[les35]

You would be obliged to register for VAT in the UK if your turnover exceeds £85,000 in any 12 consecutive months.
You can choose to register for VAT as you are in business. This would enable you to recover VAT on your costs.
Once registered, B2C services are subject to UK VAT at 20%. B2B services are subject to the Reverse Charge, so the recipient accounts for VAT, and you don't.
I don't think you need to be registered for VAT in France.

[katedebitoor]

Hi Stephen

When you export to the EU, there are different rules depending on whether you export goods or services, whether the customer is registered for VAT, and whether you are exporting to businesses (B2B) or selling directly to consumers (B2C). So there when you sell translation services, you may need to follow different rules for different clients.

As a general rule Debitoor has a blog post which gives an overview of these rules: https://debitoor.com/dictionary/export-vat

I would also suggest taking a look at HMRC (https://www.gov.uk/guidance/vat-exports ... -countries) and Europa (http://europa.eu/youreurope/business/va ... dex_en.htm) if you want any further information.

I hope this helps!

Kate at Debitoor