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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5324
Experience:  FCCA FCMA CGMA ACIS
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I am providing consultancy services to company registered in

Customer Question

Hi! I am providing consultancy services to company registered in UK from Latvia. While company was registered for VAT, I was issuing 0 VAT invoices (Provision of services, Reverse charge - VAT is not applicable). Company now is no longer registered for VAT. Do I understand correctly, that I should do invoicing with VAT now ?
Submitted: 15 days ago.
Category: Tax
Expert:  bigduckontax replied 15 days ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Under the reverse charge system you still issue a VAT invoice with tax at 20%. However, you simultaneously enter the VAT as an input thus for you effectively making it zero rated, but your customer has a VAT invoice from which he can reclaim the input tax.

If he ceases to be registered for VAT you still issue a VAT invoice as normal, he pays and you render the money on your quarterly return.

I do hope that I have been able to resolve your conundrum for you.

Expert:  bigduckontax replied 15 days ago.

Post to clear my question list only.