VAT on invoices from the EC

[ecommerce84]

Hi All,

I'm on the Flat rate Scheme and receive invoices from Gogle Adwords without VAT (they are located in the Republic of Ireland and I have supplied my VAT number). I will then pay 17.5% on my VAT return.

However, for invoices from the EC that I am charged VAT on in advance(Shopping.com charge me Irish VAT at 21%), can anybody confirm that I do not owe a further 17.5% to HMRC on these invoices?

(btw subsequent invoices will be net of VAT, saving me 2.5%, before anyone points that out )

Thanks.

 

[Kent Accountant]

Alpha is the expert on this one

 

[autolycus]

Yes, Alpha is definitely the expert on this. He just loves questions about EU Vat and the flat rate scheme.

 

[ecommerce84]

Lol,

Well i'm glad someone does.

 

[autolycus]

Can you not tell from the way he has leapt in to join this discussion.

 

[wood1e2]

The VAT office helpline can help 0845 010 9000, we are currently setting a business up that will have the service in Spain. So as long as we are dealing B2B the invoices will be nett of VAT. And the business in spain we sell to, has a legitimate IVA number.

If we sell to an individual then we will have to charge VAT. Not sure if this helps, but the VAT office will...or this Alpha if he/she turns up

 

[ecommerce84]

Thanks guys'

All i really need to know is if I will have to pay an additional 17.5% on top of an invoice that already includes German/Irish/French VAT etc. I don't want to have to pay VAT once let alone twice!!

 

[Alpha]

And they said that flat rate vat scheme was a simpler system.

Well it is if you do all your business in the UK and only use a manual system

First the good news

If you supply services to a customer/client based within the EU and you have their vat registration number (and checked that it is valid)then that turnover can be ignored in calculating the fixed rate vat charge.
If you supply goods or services to clients/customers based outside the EU then the gross value would need to be included for calculating the fixed rate vat charge)

The bad news

If you receive services from other EU suppliers then you have to account for vat at 17.5% and put this amount in box 2. This vat is not recoverable (Whereas it would be if you was on the standard vat scheme).

 

[visagephoto]

Not sure if it's relevant, but I recently received a parcel from a supplier in Italy, and at the bottom of their UK price list it states "No VAT is payable if you are registered. Non VAT registered add 20% Italian VAT."

 

[ecommerce84]

If you receive services from other EU suppliers then you have to account for vat at 17.5% and put this amount in box 2. This vat is not recoverable (Whereas it would be if you was on the standard vat scheme).

Thanks Alan, but does this statement still stand true if I have already paid Irish VAT on the service @21%. (which I have done).

I.e, do I still have to pay a further VAT amount of 17.5%?

 

[ecommerce84]

I also take it that If I receive an Invoice form the United States for advertising on another website, I must further pay VAT on this invoice?