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bigduckontax
bigduckontax, Accountant
Category: Tax
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origin;destination;customer;"applicable legislation(to mention

Customer Question

origin;destination;customer;"applicable legislation(to mention on the invoice)";VAT
England (UK);England (UK);Comp.registered for VAT, in England (UK);"VAT";20%
England (UK);England (UK);Comp.registered for VAT, in EU;"Not taxed England(UK) (self-assessed)";0%
England (UK);England (UK);Comp.registered for VAT, third country;"Not taxed in England(UK)(self-assessed)";0%
England (UK);England (UK);Not registered for VAT;"Subject to VAT";20%
England (UK);EU Country;Comp.registered for VAT, in England (UK);"VAT exempt";0%
England (UK);EU Country;Comp.registered for VAT, in EU;"Not taxed in England(UK)(self-assessed)";0%
England (UK);EU Country;Comp.registered for VAT, third country;"Not taxed in England(UK)(self-assessed)";0%
England (UK);EU Country;Not registered for VAT;"Subject to VAT";20%
EU Country;England (UK);Comp.registered for VAT, in England (UK); VAT;20%
EU Country;England (UK);Comp.registered for VAT, in EU;"Not taxed in England(UK)(self-assessed)";0%
EU Country;EU Country;Comp.registered for VAT, third country;"Not taxed in England(UK)(self-assessed)";0%
EU Country;England (UK);Not registered for VAT;"Not taxed in England(UK)";0%
EU Country;Other country EU;Comp.registered for VAT, in England (UK);"VAT";20%
EU Country;Other country EU;Comp.registered for VAT, in EU;"Not taxed in England(UK)(self-assessed)";0%
EU Country;Other country EU;Comp.registered for VAT, third country;Not taxed in England(UK)(self-assessed);0%
EU Country;Other country EU;Not registered for VAT;"Not taxed in England(UK)";0%
EU Country;Even EU Country;Comp.registered for VAT, in England (UK);"VAT";20%
EU Country;Even EU Country;Comp.registered for VAT, in EU;Not taxed in England(UK) (self-assessed);0%
EU Country;Even EU Country;Comp.registered for VAT, third country;Not taxed in England(UK)(self-assessed);0%
EU Country;Even EU Country;Not registered for VAT;"Not taxed in England(UK)";0%
"3rd country(not EU Country)";England (UK);Company registered for VAT, in England (UK);"VATexempt";0%
"3rd country(not EU Country)";England (UK);Company registered for VAT, in EU;"VATexempt";0%
"3rd country(not EU Country)";England (UK);Company registered for VAT, third country;"VATexempt";0%
"3rd country(not EU Country)";England (UK);Not registered for VAT;"VAT exempt";0%
England (UK);"3rd country(not EU Country)";Company registered for VAT, in England (UK);"VAT exempt";0%
England (UK);"3rd country (not EU Country)";Company registered for VAT, in EU;"VAT exempt";0%
England (UK);"3rd country (not EU Country)";Company registered for VAT, third country;"VAT exempt";0%
England (UK);"3rd country (not EU Country)";Not registered for VAT;"VAT exempt";0%
We are a new Haulage company in England and have to start invoicing, but we are not sure if the above table with regard to VAT is Correct? Could you please inform us if it is correct?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I'm Keith and happy to help you with your question.

I do hope you know and understand about the reverse charge system when you are invoicing EU customers. If you have their VAT, or equivalent number, then you post the VAT simultaneously as an input and and output, effectively zero rating the supply. You then have to complete an EU Sales List at intervals to cover the position. A company with which I am associated undertook one of those in the 80s and has never done one since yet receives these lists with monotonous regularity!

Now I hit a problem. What do you mean by 'Origin EU Country or 3rd Country'? Are these moneys you have paid or do you mean a journey starting and finishing outside the UK? Please advise. I need an explanation, please before I can advise.

I can comment on the first eight though:

1. Correct

2. Reverse charge item

3. Should be 20% VAT

4. correct

5. Should be 20%, why exempt?

6. Reverse charge item.

7. Correct

8. Correct

Customer: replied 2 years ago.

What I mean with origin :- Where the haulage service started

Origin EU country = The haulage service started in an European Union country.

Origin 3rd Country = The haulage service started in a Non European Country.

Destination _ Where the haulage service ended

In Portugal for every question I have asked above there is a article, that article has to be mentioned on the invoice. How does it work in England, is there any article / notice to be mentioned on the invoices that states why we haven't charged VAT?

Thanking you in advance and awaiting your reply.

Expert:  bigduckontax replied 2 years ago.
Right; here is the Gov UK advice on 'Place of supply:'
'If you are in the UK and the place of supply of your service is in another EU country, you don’t pay UK VAT. However, for some supplies, you may need to register and account for 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. A list of EU VAT contacts can be found in Notice 725.
If the place of supply of your service is not in the EU you don’t have to charge EU VAT or include the sale on your VAT Return.'
So for 9 - 20 these are not charged for VAT at all, unless the reverse charge comes into play and that depends on the individual EU countrys' rules.
For '3rd countries' there is no VAT at all.
21 Zero rated not exempt
22 Reverse charge
23 Zero rated not exempt
24 Zero rated not exempt
bigduckontax and 2 other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.
Expert:  bigduckontax replied 2 years ago.
And you generous bonus, thank you..