I suppose the logic is that an organisation with no business activities won't be registered for VAT in their own country, so couldn't account for VAT through a reverse charge?
I would say anything related to reverse charge is highly illogical captain in the first place - its a shame they didn't find a different way to avoid the abuse that was going on without making people with 10k income worry about vat moss and having to doa vat registration that is basiclaly a fake registration but they may be able to claim some inputs back and expecting a joiner doing 80k of income a year should know that when they add up their sales for registration purposes they should have known to include the value of payments to google and facebook in their sales totals - the whole thing is ridiculous being frank. Hmmmmm what we need is an office of tax simplifaction that would sort out all these littel funnies and ensure the tax system gets simpler over time.
Onwards and upwards with reverse charge on construction in 4 months time. can't wait till i have the conversation with the subbies where i say bob the vat you used to charge billy please stop - unless billy tells you he is an end user - oh and billy even though bob has stopped charging you vat you still need to pay that vat across to hmrc even though it doesnt exist and while you are at it make up an equal amount of input vat that doesnt exist and claim it back , well thats unless you have swapped onto the flat rate scheme like i told you to do 3 months ago - oh and keep an eye out for bob de-regsitering for vat as thats important as if the reason he doenst charge you vat changes and the lack of vat is now down to him not being vat registred rather than that other reaosn you don'y understand then the input vat back you will have claime back that didnt exist will have bene claimed back in error and you may end up with a surcharge even though you will have overstated your output vat by the same amount. anyone would think i have been practicing the conversation in my head hmmmmm.