A VAT Question. UK Business invoicing an EU Business

[VATQuestion240625]

Hi,

If a UK company is invoicing an EU company I believe that as it's a B2B then we don't charge VAT and we have to put on the invoice that it is a Reverse Charge Transaction. I think.

Does it make a difference if the goods are being delivered to a site in the UK but we are invoicing an EU company?

@Mumsnet please move this if it shouldn't be in Chat.

Thank you.

@Mumsnet Should I have put this somewhere else?

hi....You are true that VAT is normally not applied as a reverse charge for B2B UK to EU transactions. However, if the items are delivered within the United Kingdom, UK VAT is charged because the transaction is considered domestic....The reverse charge is only applicable if the products are exported outside of the UK. Always include a note on the invoice specifying where the products were delivered.....

Thanks, for clarity. I didn’t realise the delivery location decided the VAT treatment, not just the customer’s country......

If it’s goods being supplied, it is the location of the goods that dictates where VAT is due.

If the goods don’t leave the UK, it is UK VAT.

If the customer is arranging for the export of goods, it might be possible to zero rate but there’s a lot of evidence needed to show the goods have actually left.

www.gov.uk/hmrc-internal-manuals/vat-exports-of-goods-from-the-uk/vexp20300

ok thank you for reply it is really helpful for me....

If your business is registered for VAT and is delivering goods to the UK, then you apply VAT. It doesn’t matter where the customer is based.