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Where Taxpayers and Advisers Meet

UK sole trader - EU VAT question

kelcas01
Posts:1
Joined:Tue Aug 02, 2022 3:13 pm
UK sole trader - EU VAT question

Postby kelcas01 » Tue Aug 02, 2022 3:14 pm

Hi all,

I'm a non-VAT registered UK sole trader offering B2B copywriting services. I have clients in Switzerland, Denmark and Hungary.

My question is when invoicing these international clients, do I need to be charging local VAT?

My understanding is that my services are out of the scope of UK VAT, and I don't charge UK VAT in any event until I hit the £85k threshold.

For the local VAT rules, Switzerland seems to require local VAT registration at a turnover of 100000CHF.

For Denmark and Hungary, I believe the reverse charge principle applies. Therefore I would invoice with no VAT and the client will deal with it on their own VAT return. Has Brexit changed any of this?

Thanks all!

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: UK sole trader - EU VAT question

Postby les35 » Wed Aug 03, 2022 10:37 am

The Place of Supply rules mean that VAT is due where your customer belongs, so no UK VAT applies.
You do not need to worry about how the recipient does that - that is not your responsibility.
Your sales invoice should state; 'Reverse Charge supply. Recipient to account for VAT.'

I understand that the above applies to EU and ROW recipients, so I wouldn't spend too much time worrying about their local rules.


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