- Original Poster
- #1
Hi,
Not long time ago I received great assistance from you regarding VAT application. Thanks to you I’m now successfully registered for VAT
However, nothing seems to be straightforward, I thus need your help again....
Let’ start from the beginning. I am a travel agent as per HMRC Notice 709/6: 'both you and your principal have agreed that you will act as their intermediary (agent).' and 'you must routinely fully disclose the name of the principal you are acting for'. I’m pretty sure it’s about me: On my website I’ll offer UK customers accommodation in hotels in Europe. Customer will ask me for available dates and I’ll confirm it with the hotel. Then I’ll pass to customer information from the hotel about T&C of booking. Then the customer will pay the hotel. I’ll issue an invoice for the hotel and receive commission based on the amount of transaction between the hotel and the customer.
In this scenario what is the place of supply of my services? I have agency agreement signed with EU hotel and I issue invoice for EU hotel, however, I arrange everything in the UK?...
Moreover, what to do with VAT? I would like to do it as easy as possible for the hotels – so they would like to cooperate with me. As far as I’m concerned, for any UK supplies my VAT rate will be 20%. For hotels in EU, if they are VAT registered, then I’ll not charge VAT but I must obtain their VAT number and disclose this on my invoice. Is it the only information I would need to get from the hotel? Do I also need from them Certificate of Tax Residence? And I think then the hotel will deal with the VAT their end through the reverse charge system – which I don’t understand at all. How does it work? And – am I right so far?...
Am I missing something?...
Thank you and I look forward to your replies.
Kind regards,
Kasia
Not long time ago I received great assistance from you regarding VAT application. Thanks to you I’m now successfully registered for VAT
However, nothing seems to be straightforward, I thus need your help again....
Let’ start from the beginning. I am a travel agent as per HMRC Notice 709/6: 'both you and your principal have agreed that you will act as their intermediary (agent).' and 'you must routinely fully disclose the name of the principal you are acting for'. I’m pretty sure it’s about me: On my website I’ll offer UK customers accommodation in hotels in Europe. Customer will ask me for available dates and I’ll confirm it with the hotel. Then I’ll pass to customer information from the hotel about T&C of booking. Then the customer will pay the hotel. I’ll issue an invoice for the hotel and receive commission based on the amount of transaction between the hotel and the customer.
In this scenario what is the place of supply of my services? I have agency agreement signed with EU hotel and I issue invoice for EU hotel, however, I arrange everything in the UK?...
Moreover, what to do with VAT? I would like to do it as easy as possible for the hotels – so they would like to cooperate with me. As far as I’m concerned, for any UK supplies my VAT rate will be 20%. For hotels in EU, if they are VAT registered, then I’ll not charge VAT but I must obtain their VAT number and disclose this on my invoice. Is it the only information I would need to get from the hotel? Do I also need from them Certificate of Tax Residence? And I think then the hotel will deal with the VAT their end through the reverse charge system – which I don’t understand at all. How does it work? And – am I right so far?...
Am I missing something?...
Thank you and I look forward to your replies.
Kind regards,
Kasia
