This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Foreign Services and Flat Rate VAT

Adam Hooper
Posts:1
Joined:Sun Feb 14, 2010 2:01 pm
Foreign Services and Flat Rate VAT

Postby Adam Hooper » Sun Feb 14, 2010 2:12 pm

Hello,
My partners father has his own business in technical publishing and is registered on the VAT flat rate scheme. He has recently been working on one project designing the help features on a piece of software. He is based and works in the UK but invoices a German company in euros.

I have a couple of questions:

1-Should he be charging UK VAT on his services?

2-If not is there an allowance made for this in the flat rate scheme?

The way the flat rate scheme is set up is that he has to pay 8.5% on his gross earnings although he may not be charging any VAT as the customer is in Germany?

Can anyone help clarify the situation?

Regards
Adam

Eamon McNicholas
Posts:73
Joined:Wed Aug 06, 2008 3:37 pm

Flat Rate Scheme and EU Sales

Postby Eamon McNicholas » Mon Feb 15, 2010 3:52 pm

If the supplies to another EU state are to be treated for the place of supply rules as outside UK VAT, which needs to be verified, then the turnover involved might be left out of account for the UK scheme turnover.

See HMRC Notice 733 "Flat Rate Scheme for Small Businesses", especially para. 6.4.

Eamon Mc Nicholas
Tax Barrister

www.EamonMcNicholas.com

[The above is not to be taken nor used as specific advice]


Return to “VAT & Excise Duties”