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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 10838
Experience:  FCCA FCMA CGMA ACIS
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We are a Northern Ireland company, VAT registered in the UK.

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we are a Northern Ireland company, VAT registered in the UK. A Lithuanian company is doing software development for us as contractors and they wanted to know are VAT number. We sent our usual number but they replied that whey they looked it up it is an 'invalid number for cross border transactions within the EU'.. presumably they might be thinking we are still in the EU or something? Do they simply add their VAT and then we claim it back through UK or how does this work?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: Their invoice is 2,000 EUROs plus VAT (if applicable)... is VAT applicable and can we claim it back?

Post Brexit UK and EU transactions are standard rated supplies and VAT paid and reclaimed. The old reverse system is dead.

Customer: replied 8 days ago.
Ok, I will inform them to charge the VAT and we will reclaim in the normal way. Thanks

Of course, wiithin the EU the reverce charge system is still in use.

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