I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
Thanks for your reply its very helpful. However I am still a little unsure on the reverse charge VAT bit.
The invoices are sent in my companies name for the commission on a hotel booking. As I am not VAT registered I think I am right in thinking I don't have to pay the reverse charge VAT, however as I am effectively a middle man and am effectively passing on the invoice to the Hotel so as they are VAT registered do they need to pay the VAT under the reverse charge rules?
Or are we saying I am receiving and paying the invoice and then charging the Hotel the same amount therefore nobody needs to pay the VAT?
I'm not 100% sure I am explaining this very well!
no problem. Thanks for your help
David, thank you for your patience.
The reverse charge applies to services where
- the place of supply is the UK
- the supplier belongs outside the UK
- the customer is a relevant business person - see
- the supply is not exempt
- for supplies not within the general rule, the customer is VAT registered in the UK.
As you are not VAT registered reverse charge on services does not apply to you.
Both the supplier and the customer have to be relevant business person for application of reverse charge
More information on reverse charge can be found under VAT on services received from overseas suppliers here
I hope this is helpful.