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bigduckontax
bigduckontax, Accountant
Category: Tax
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Do I charge VAT on goods delivered to a company in the EU,

Customer Question

Do I charge VAT on goods delivered to a company in the EU, excluding the UK, but invoiced to a UK registered company
Submitted: 2 months ago.
Category: Tax
Expert:  bigduckontax replied 2 months ago.

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

Inter EU sales are, in general terms, subject to VAT at the standard rate unless the supplies are reduced-rated eg utilities or zero-rated eg travel or possibly exempt eg medical.

I do hope that you have found my reply of assistance.

Customer: replied 2 months ago.
That is not the point. We deliver goods to VAT Registered Customers in the EU outside the UK and we do not charge them VAT. They have to treat it as a self supply in their own country. In this case we are dleivering to an EU Country outside the UK, but are invocing a company inside the UK. Do we treat this as we as would a delivery to the UK and charge VAT, or as a delivery to the EU and not charge VAT.
The HMRC rues are clear if we deliver to the Uk and they forward to an EU country, but I can see no ruling when we do the delivery
Expert:  bigduckontax replied 2 months ago.

There is no question that inter EU sales are subject to VAT at the appropriate rate. Even if the reverse charge is operated this is still the case.

Customer: replied 2 months ago.
VAT Notice 725
3. Supplies to customers registered for VAT in another member state
3.1 Accounting for VAT
The normal VAT treatment of goods supplied between VAT-registered traders in different member states is as follows:the supply in the member state of dispatch is zero-rated (how this applies in the UK is explained in more detail in section 4)
VAT is due on the acquisition of the goods in the member state of arrival and is accounted for by the customer on their VAT Return at the rate in force in that member state (how this applies in the UK is explained in more detail in section 7)I'm begining to think that this question is beyond your level of expertise
Expert:  bigduckontax replied 2 months ago.

On the contrary, I am well aware of the inter EU sales rules and the VAT Notice quoted appears to be mainly quoting the procedure where the reverse charge is operating, a common enough procedure in this area. If the VAT Inspectors find that you are operating outside the reverse charge envelope and not charging the tax they will eat you for breakfast.