Dual Resident - Which Country Do I Bill From?

[andycheeseman]

Hi,

I am self employed in the UK and I will be moving to Helsinki (Finland, EU) soon. I will be maintaining my relationships with my UK clients, who I provide film and design services to in the UK. I'll be dual resident in both the UK and Finland for tax purposes, and I intend to use the double taxation treaty to resolve this. I am fiscally domicile in the UK, as the UK is my centre of vital interest.

All things considered, which country do I raise invoices from?

Finland has a much lower threshold for VAT (around 8000 EUR), so billing from Finland will negatively impact my relationship with non-VAT registered customers in the UK; adding 24% onto their invoices that they won't be able to reclaim/offset.

Any thought and input very welcome.


Thanks,
Andy.

[GlobalTaxAdviser]

Hi Andy

The VAT rules have changed from 1st Jan 2015 in relation to supplies of broadcasting, telecommunications and Electronic Services. With limited information about the services you offer, I am not sure if this affects your business.

Basically the place of supply is where the customer is based and hence you will need to register in those countries where you supply to. I do not believe there is a threshold in respect to the new EC VAT rules.

Otherwise With B2B services you can reverse charge as the supply is where the customer is based. Your customer does not have to be VAT registered though it may help to support your case.

B2C place of supply is where the customer is based.

Now where to invoice should be from the country you are stationed. Actually you could end up being non tax resident in the UK as its earned overseas though that may depend on the Statutory Residence Test hence you probably should invoice from Finland and pay taxes there.

I think it would be better for you to have a UK company as that would be treated as resident in the UK and you can invoice from the UK

It is a little complex and maybe you should just discuss it with an adviser.

Thanks

Sash

[andycheeseman]

Hi Sash,

I will have a permanent UK address available to me whilst I am abroad, so should I be able to raise invoices from that address?

Given the nature of my work, I will also be spending enough time in the UK with my clients to be classed as resident in the UK for tax purposes.


Thanks,
Andy.

[andycheeseman]

Hi Again,

Also, I don't think my video production and graphic design services will come under these rules. They're not 'broadcast' (corporate videos) or automated.

http://www.revenue.ie/en/tax/vat/leafle ... ection12.3


Thanks,
Andy.

[GlobalTaxAdviser]

Hi Andy

I would invoice from the UK if you are resident in the UK and all your clients are from the UK

Kind Regards

Sash

[andycheeseman]

Hi Sash,

Thanks for your reply.

Do you run your own accountancy business in the UK? I'm looking for someone to advise professionally on some other topics.

If so, do you have a website or contact number?

Thanks,
Andy.