Complex Purchase Invoice

[numbersrule]

We are solely UK based and we purchased a Perpetual Licence for some software.
The supplier is a Canadian Company but they have a complex ownership structure with their immediate parent being global and their ultimate grandparent being originally USA based but they also have a UK office.
The Invoice is initially presented as a cost in USD but then within the Invoice there is an additional sub-section entitled 'For VAT purposes only ( amount in GBP ) and they have used an exchange rate to convert to GBP and given Net and VAT (20%) and Gross amounts in GBP.
The Remittance section of the Invoice is for a bank in the Netherlands and that's where payment went converted to USD as per USD amount on Invoice.
The footer of the Invoice gives a UK address for a UK office of the ( originally USA ) grandparent and a Registration number in England and a GB VAT number.
There is also a very official sounding four paragraphs in a box entitled 'Export Control'.

It's all so bizarre.

I'd be interested to read the opinions of forum members on the following:

Is a Perpetual Licence for software a service or is it goods?
And should the VAT reverse charge apply to this Invoice?

 

[Paul Kelly ICHYB]

Which company is invoicing you?

Are they registered for VAT?

Are you registered fore VAT?

 

[Customs Geek]

There is also a very official sounding four paragraphs in a box entitled 'Export Control'.

This will be for US export controls on goods (including intangibles such as software) that could potentially be used or converted to military use.

 

[numbersrule]

Which company is invoicing you?

Are they registered for VAT?

Are you registered fore VAT?

My understanding is that the UK office of the USA 'Grandparent' is invoicing us because their details are in the footer, including their GB VAT Reg, so yes, they are VAT Registered in UK.

And my company is based and VAT Registered in UK.

I think the 'Export / Import' aspects come in because the Creator of the software is the Canadian 'Grandson'.

 

[numbersrule]

This will be for US export controls on goods (including intangibles such as software) that could potentially be used or converted to military use.

Oh, I see. We have never used the software on military projects but admittedly, in theory, it could be relevant in certain circumstances for other companies.

 

[Ray272]

My understanding is that the UK office of the USA 'Grandparent' is invoicing us because their details are in the footer, including their GB VAT Reg, so yes, they are VAT Registered in UK.

And my company is based and VAT Registered in UK.

I think the 'Export / Import' aspects come in because the Creator of the software is the Canadian 'Grandson'.

Sounds like Kestrel.

 

[numbersrule]

Sounds like Kestrel.

I've never heard of Kestrel. What do they do?

 

[Ray272]

I've never heard of Kestrel. What do they do?

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