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My customer is in Finland and I am not VAT registered
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Hi,
My customer is in Finland and I am not VAT registered (I'm under the threshold).
I have submitted the invoice to them with their VAT details on, but they ask: "Could you add in the invoice the reason why this is not EU trade and why invoice is not including the VAT, there should be the legal clause for that in UK."
Please can you advise me on the correct way to do this, and anything I need to do?
Thankyou!
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Expert:
bigduckontax
replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. You have perfectly correctly issued an invoice without a VAT element as you are not registered for the tax. Your customer clearly wants a VAT invoice because, not unreasonably, they wish to reclaim same although, of course, there isn't any. You will have to tell them that you are not registered for VAT in the UK and that registration is not compulsory if your turnover does not breach the 82K threshold in any year. Some EU states do not have a threshold at all and some view the British system with the deepest suspicion. When I ran the accounts for a company not registered for VAT all the invoices carried a note to that effect to preclude inquiries of this nature. I do hope that I have shown you a way forward in this matter.
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Customer:
replied 2 years ago.
Thank you very much for this answer, it has certainly helped me and I'm much obliged.
Expert:
bigduckontax
replied 2 years ago.
Delighted to have been of assistance. Thank you for your support.
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