VAT question

[Csills73]

Good morning,

I am wondering if anyone can help me with the following please:

Can a UK company reclaim the VAT that an Australian company charges them for services/goods? Do you have to use the reverse charge mechanism to reclaim it and how does it work?

Can a UK company charge VAT to its UK client if they provide services to them but the service was carried out in Australia using a third party supplier in Australia? We are talking about VAT registered companies.

I appreciate any thoughts



Many thanks

 

[Customs Geek]

Put simply you can only reclaim UK VAT on your UK VAT return.
I believe Australia has GST rather than VAT in any case so you may want to check your supplier has charged you correctly if those goods have been exported or services provided outside Australia.
Reverse charge means you effectively both self assess and reclaim the UK VAT on your VAT return. This applies to services .
There is guidance here on both place of supply and when VAT should and shouldn’t be charged. There’s also a section on reverse charge.
www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a

It can be complicated so you may be better to check with your accountant.

 

[MyAccountantOnline]

..

Can a UK company reclaim the VAT that an Australian company charges them for services/goods? Do you have to use the reverse charge mechanism to reclaim it and how does it work?


...

If it's Australian VAT no.

The reverse charge wont apply as its for UK and EU transactions.

 

[MyAccountantOnline]

....

Can a UK company charge VAT to its UK client if they provide services to them but the service was carried out in Australia using a third party supplier in Australia? We are talking about VAT registered companies.

.....

In a business to business supply the general rule is that the supply is where the customer belongs so if its a UK business customer UK VAT is due but do read the guidance at the link above.

 

[PaulThompson]

Think you should ask Trump about reclaiming VAT charged in another country

 

[UK Contractor Accountant]

Think you should ask Trump about reclaiming VAT charged in another country

its a TARIFF

 

[David Griffiths]

its a TARIFF

Have you noticed that you can't spell tariffs without ffs?

 

[Bobbo]

The reverse charge wont apply as its for UK and EU transactions.

No it's not - the reverse charge applies globally.

 

[Bobbo]

Can a UK company charge VAT to its UK client if they provide services to them but the service was carried out in Australia using a third party supplier in Australia? We are talking about VAT registered companies.

You'll need to be more precise than "services"

 

[DontAsk]

No it's not - the reverse charge applies globally.

Indeed. Just the other day I purchased form a US multi-national who collected the VAT. It even mentions reverse VAT on the invoice.

 

[Mohan_OC]

Good morning,

I am wondering if anyone can help me with the following please:

Can a UK company reclaim the VAT that an Australian company charges them for services/goods? Do you have to use the reverse charge mechanism to reclaim it and how does it work?

Can a UK company charge VAT to its UK client if they provide services to them but the service was carried out in Australia using a third party supplier in Australia? We are talking about VAT registered companies.

I appreciate any thoughts



Many thanks

to your 1st question, it depends if the Aus company is UK VAT registered and whether they are providing services or goods. to your 2nd question, VAT on supplies of services depends on many factors, it's not a simple yes / no at this point. what was the service carried out in Australia? we have a team of vat experts at Oury Clark. if you need specific help with a query or need us to help with VAT compliance, just reach out to me. [email protected]