Applying VAT for digital service from a non EU Company

[nikolay.saev]

I have the following situation:

I provide a digital service (leads) to business customers in the UK (finance brokers). This is done through a company that is registered offshore (Non-EU). Would I need to be charging and applying VAT to my prices or my clients would be the ones responsible for that or no VAT will be paid at all for this kind of service?

 

[Scalloway]

You need to look at the VAT MOSS rules

https://www.gov.uk/guidance/register-and-use-the-vat-mini-one-stop-shop

 

[nikolay.saev]

According to this page - ec.europa eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm
Non-EU Business providing e-services to EU business does not need to pay VAT.

 

[TheCyclingProgrammer]

As you're supplying a UK business from outside the UK you should not charge but note on the invoice that the UK business should account for it under the reverse charge rules. VAT MOSS is only relevant to B2C.

 

[mzone]

If your business customer is registered on VAT EU then you can't charge them VAT in otherwise yes.

You can easy check business from another EU country are they registered in EU VAT Data Base using this form:

http://ec.europa.eu/taxation_customs/vies/

 

[TheCyclingProgrammer]

A good point raised above - you should try and maintain some evidence that your transaction is indeed a B2B one. Checking the UK businesses VAT number as per above would be fine but if your business customer is not VAT registered you might want to keep alternative evidence; if the transaction could be deemed as B2C then the VAT rules are different and you might indeed find yourself caught up in the VAT MOSS nightmare.