How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4984
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

Good morning, I am a UK based LLP and entered into a consultancy

Resolved Question:

Good morning, I am a UK based LLP and entered into a consultancy agreement with a German compay. Do I have to charge VAT on the consultany fee or does the reverse charge apply? Kind regards, Roman
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
(Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 1 year ago.
The German company suggested to put a note on the invoice that the reverse charge applies and issue the invoice net of any VAT.
Customer: replied 1 year ago.
without any VAT.
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for you question.Under reverse charge, its the business customer who accounts for VAT on their purchase by adding it to its outputs and accounting for output VAT at the required rate, it also deducts VAT by claiming back the VAT as an input in the period. The net effect is NIL.I have seen this been applied in many cases where I deal with VAT for my clients. The German company's suggestion is right... you should put a note that reverse charge VAT applies. 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.
taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.
Best wishes.