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Where Taxpayers and Advisers Meet

Charging vat to someoen resident in Spain

Yiannis17
Posts:133
Joined:Wed Aug 06, 2008 3:43 pm
Charging vat to someoen resident in Spain

Postby Yiannis17 » Thu Feb 10, 2022 5:11 pm

Dear All,

I'm invoicing an individual who lives in Spain for professional work carried out here in the UK. My understanding of vat notice 741a section 12.1 is that vat should not be charged. HMRC have told me the opposite , that I should be charging vat, as the place of supply is the UK. The notice states otherwise.

I believe HMRC is incorrect here.

Thank you

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

Re: Charging vat to someoen resident in Spain

Postby Trevor S » Fri Feb 11, 2022 6:15 pm

HMRC have quoted the general place of supply rule for B2C services. The section of notice 741A that you've quoted is an exception to that general rule. So if you meet all the criteria of that section (including that the nature of the service is covered by 12.2) the place of supply will be Spain.

Although this would mean that the service wasn't subject to UK VAT, you may still have VAT obligations in Spain...


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