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Where Taxpayers and Advisers Meet

VAT CLARIFICATION SOUGHT ON FRENCH LORRY REPAIR

samamac
Posts:6
Joined:Fri Apr 08, 2011 1:56 pm
VAT CLARIFICATION SOUGHT ON FRENCH LORRY REPAIR

Postby samamac » Fri Apr 08, 2011 2:08 pm

Hello,

I was wondering if someone could kindly help me with the following.

I work in the accounts department of a commercial vehicle repairer here in the UK, and we've recently undertaken some repairs to a vehicle that belongs to a French company. The vehicle had an accident whilst over here in the UK, and was then repaired by us here in the UK, but I'm not sure if we need to charge them VAT on this repair?

The French company in question have supplied with their French VAT number, but as we don' normally repair trucks from overseas I'm a little unsure as to what the procedure is. Am I right in thinking that we don't charge them VAT but have to file some form with HMRC?

Unfortunately our accountant is on holiday at the moment, so any help would be very gratefully received.

Many thanks,

Sam

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

Re: VAT CLARIFICATION SOUGHT ON FRENCH LORRY REPAIR

Postby les35 » Fri Apr 08, 2011 3:20 pm

The Place of Supply rules provide the answer to the query. VAT Notice 741A chapter 8 deals with the situation where your supply is to business registered for VAT in another Member State. The type of work you are carrying out falls in the category of 'work carried out on goods.'
To demonstrate that the services are provided to a business registered for VAT in another Member State, you will need evidence of that, such as copy VAT Certificate. Written confirmation of the order, with a letterhead, will also help.
The Place of Supply rules mean that the supply is deemed to take place where the customer belongs. This means that UK VAT cannot apply. It is effectively zero rated. You should include the customer's French VAT registration number on the invoice.
There is no additional paperwork necessary, nor obligation to inform HMRC separately. The value of the supply is to be included in Box 6 on your VAT Return, ie: the same as for invoices to UK-based customers.

samamac
Posts:6
Joined:Fri Apr 08, 2011 1:56 pm

Re: VAT CLARIFICATION SOUGHT ON FRENCH LORRY REPAIR

Postby samamac » Fri Apr 08, 2011 3:43 pm

Thank you very much for your reply, that's very helpful.

Generix
Posts:2532
Joined:Wed Aug 06, 2008 3:41 pm

Re: VAT CLARIFICATION SOUGHT ON FRENCH LORRY REPAIR

Postby Generix » Fri Apr 08, 2011 4:27 pm

To add further;

You only need satisfy yourself that the customer is in business, and established overseas. They do not need to be VAT registered - as they have provided you with their French VAT number, you should ensure it is valid (see link):

http://ec.europa.eu/taxation_customs/vi ... anguage=en

I can't remember the thresholds which apply, but you may be required to complete an EC sales list for services for this supply.

Else the post above covers it pretty comprehensively.
Do you adore to transfer your artistic and inventive qualities to renovate a part type? Perhaps your friends who tour your sanctuary head remarks about want they could levy you to change their premises.

samamac
Posts:6
Joined:Fri Apr 08, 2011 1:56 pm

Re: VAT CLARIFICATION SOUGHT ON FRENCH LORRY REPAIR

Postby samamac » Mon Apr 11, 2011 5:10 pm

I see, thanks again. This is a very helpful forum.


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