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Where Taxpayers and Advisers Meet

EC Reverse Charge

jh88
Posts: 1
Joined: Tue Jul 02, 2019 10:39 am

EC Reverse Charge

Postby jh88 » Tue Jul 02, 2019 10:47 am

We (UK company) have a customer (Spanish company) who is reselling our goods and services to another UK company.

The goods we are shipping and installing direct to the UK company and invoicing the Spanish company for the costs, the services will be also charged to the Spanish company.

We initially charged VAT on our invoice to the Spanish company as the place of supply and install was within the UK, but they have now come back to with their VAT number and this comment 'as per extra-community agreement we are VAT exempt as we don’t have any headquarter based in UK.'

Should this be an EC reverse charge sale or should we charge UK VAT?

Thanks

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