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Do I have to charge VAT?
Thread poster: Petr Masner
Williamson
Williamson  Identity Verified
United Kingdom
Local time: 09:40
Flemish to English
+ ...
B2B and B2C Mar 30, 2010

B2C services [Article 45 of the VAT Directive].
Example 22: For consultancy/translation services provided by a supplier established in Lisbon to a private customer who resides in Denmark, Portuguese VAT must be charged.

Example 23: A supplier established in Greece will need to charge Greek VAT to a business customer established in Romania who acquires legal services to be used for his private purposes.

However, some member-states have a high-treshold.
So, ... See more
B2C services [Article 45 of the VAT Directive].
Example 22: For consultancy/translation services provided by a supplier established in Lisbon to a private customer who resides in Denmark, Portuguese VAT must be charged.

Example 23: A supplier established in Greece will need to charge Greek VAT to a business customer established in Romania who acquires legal services to be used for his private purposes.

However, some member-states have a high-treshold.
So, what do I do with the exemption, through it out of the window and register.

Registration has no benefits at all, but a lot of paperwork.

Besides I give up a competitive advantage that if the customer at the other end of the bargain, is a private customer, I don't have to charge 17,5% of VAT

UK-situation:

Businesses that may not charge VAT
Businesses with annual sales below £68,000 (2009-10) don't have to register for (and therefore charge) VAT, but they may choose to do so voluntarily.
If they don't, the price you pay for their goods or services may be cheaper than if you bought the same goods or services from a VAT-registered supplier.

If you are in the UK and the place of supply of your service is in another EU country, the supply is outside the scope of UK VAT. However, for some supplies, you may need to register and account for local VAT in the country of supply. You will need to check with the tax authority in that country to find out how to treat the services you are supplying.

The general rule and the place of belonging
For most supplies of services, the place of supply is decided by what is known as the 'general rule'. However, some supplies are subject to special rules that will affect their place of supply (see the section below on special rules).
The general rule for working out the place of supply of services (apart from those covered by special rules)
You supply services to a: The place of supply is:
business customer the place where the customer belongs
non-business customer the place where the supplier belongs

Anyway, I stick to the threshold, it will save me a lot of paperwork.



[Edited at 2010-03-30 16:53 GMT] ▲ Collapse
 
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Do I have to charge VAT?







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