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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4078
Experience:  FCCA FCMA CGMA ACIS
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We are a UK based administration company who is registered

Customer Question

We are a UK based administration company who is registered for UK VAT. An Irish based training course company who is VAT registered in Ireland has approached us to administer their training courses.
The Irish company sells both distance learning courses (online) and traditional face-to-face courses. In essence we will run the courses on behalf of our client, e.g. booking venues, arranging teachers etc. We will run the courses for their UK customers, Irish customers and a handful of other European countries (we will also deal with their customers enquiries etc.) There may be scope to manage courses they run in countries outside the EU also.
How would we account for VAT for this service. In essence we would be providing a service to the Irish company (our customer), but for their customers who are based in the UK, Ireland and other EU countries?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Sales within the EU are standard rated ie at 20% so you issue invoices showing this. If the customer has a VAT or equivalent number and advises you of it then they pay you net and the reverse charge system operates. Under this the VAT is is entered as an output and simultaneously posted as an input also effectively making the transaction zero rated. You have to report any activities using the reverse charge on an EU Sales List to HMRC periodically.
I do hope that you find me reply of assistance.