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Where Taxpayers and Advisers Meet

VAT (what else) and 2 clients

SadOldMan
Posts:1
Joined:Wed Mar 20, 2019 8:49 pm
VAT (what else) and 2 clients

Postby SadOldMan » Wed Mar 20, 2019 9:03 pm

Two clients, one UK resident and one non UK resident (African), one piece of work (legal services) and one invoice (can't issue two). Is VAT payable on the whole invoice or on 50% of the invoice?

Thanks

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

Re: VAT (what else) and 2 clients

Postby les35 » Thu Mar 21, 2019 12:34 pm

Place of Supply of legal services provided to business client outside UK, including Africa, is where the supplier is located. You need evidence that they are in business. So, UK VAT does not apply.
But VAT is due on UK to UK supply.

Trevor S
Posts:108
Joined:Tue Jan 01, 2019 12:37 am

Re: VAT (what else) and 2 clients

Postby Trevor S » Fri Mar 22, 2019 9:16 am

If your clients are not in business, place of supply is where you are based (UK), and VAT is chargeable on the full supply.

If your clients are in business, the place of supply is where their businesses are established (which may or may not be where the specific individuals that you are dealing with reside). Assuming that is one in the UK and one outside, I can't see that you have any option but to raise two invoices. The UK one will need an invoice addressed to them to be able to reclaim input tax (if they are eligible to). A separate invoice is required for the non-UK customer to be able to not charge them VAT. The invoice amounts should be based upon the agreed proportions that the two clients will pay.

The only way that I could see a single invoice being appropriate would be if only one was a direct client of yours, who then made an onward supply of services to the other. In which case, you would treat your charge according to who you were billing, and they would need to determine the tax treatment of their onward charge. But this should all be specified in the contract / engagement documentation.


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