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This is contrary to the advice I was given?
I was given to understand by the Dutch Finance Director and indeed the Irish Finance Director with the US Company that because I was contracted to a Foreign Company outside UK, instructed by them and paid by them outside UK ie Holland I wouldn't have to pay Vat as there is no mechanism for the US to reclaim? On this basis I have not registered for Vat since 2007?
A supplementary question?
I would submit that if you are resident in the UK then the normal VAT rules would apply to you. If you invoice your customers than your supplies to the States would be zero rated, but to those within the EU, unless the Reverse Charge ie you have the VAT or equivalent registration number of the customer system applies, these would be standard rated supplies. A classic example of the system is the taxation of racehorse jockeys whose riding fees are subject to VAT.
VAT rates for 07 - 11 were 17.5% except for 08/09 when it was 15%. Therefore you owe say 20K for 07/08, 14K for 08/09 and the same for 09/10; total some 48K plus penalties for late declaration and interest on unpaid tax. I am so sorry to have to rain on your parade.
Remember that supplies outside the EU are zero rated as indeed some within are effectively so through the Reverse Charge process.
I asked a supplementary question and didn't get a reply -
I'm an HR Consultant and invoice the US Company direct - there is no Vat exchange (they are not registered for Vat in this country). If I charged them now would they be able to reclaim the Vat back and how would the do this.
I would be grateful for a response, one that would help me enjoy my holiday in Spain, I leave tonight?