Place of supply and VAT

[temple14]

Hi

I'm at the early stages of thinking about "going alone" and starting my own company. I want to fully research all aspects of what this might entail but I'm having problems getting to grips with a few things I wonder if someone can offer me a few bits of advice....

Background; My company will sell telecommuniaction packages from UK providers. The vast majority of my sales will be in the UK and I think I understand UK VAT OK - but I have lots of contacts in Australia and France so I'm also hoping to maybe make a few sales from these contacts.

Am I right in saying that I zero rate in each case ?? (Yes its to VAT reg companies in France) The customers will be buying the service from me (the middle man if you like) but the actually service will be run by UK providers - so the place of supply is the UK right ??

 

[MyAccountantOnline]

Have a read of this it should help - http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm

 

[temple14]

Hi Nicola

Yes I have already read that article but I'm still no wiser ??

 

[MyAccountantOnline]

Hi Nicola

Yes I have already read that article but I'm still no wiser ??

You may have to re-read it a few times the rules arent simple.

You may find it easier to chat it through with your accountant or call the HMRC VAT Advice line.

 

[Moocher]

Your supply to the French company will be "reverse charged". So, on your invoice VAT will be 0% and you will write at the bottom of the invoice words to the effect that "this supply is reverse charged under the EC Directive blah blah blah". I believe there is wording somewhere on HMRC website.

The Austrialian customer is outside of the scope of UK VAT and so you will exclude any reference to VAT on your invoice and you will not charge them any VAT.

Does this make it clearer?

 

[temple14]

Hi

Yeah of course I've tried HMRC but after nearly one hour on the phone I decided it was a lost cause.

So I'm write in saying that both supplies would be zero rated - the service is an electronic service but is supplied by a UK provider so the place of supply is the UK ??? so I would be entitled to a small reclaim against the services that I sold oversea's ?

 

[temple14]

resolved...