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• # 82420
• Mon 30 Apr 2012 08:28 AM

Hi everyone, hope you can help.


I have a client who performs microsoft training and they are doing training in Switzerland for a Swiss company.

What would the vat implications be for this. What I have been reading seems to be a bit woolly as it seems rules are different depending on the nature of the service?

Many Thanks,

Carole King     


  

• Carole King

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• # 82447
• Mon 30 Apr 2012 07:59 PM

Hello Carole,

I have a client who provides services to Switzerland, I raise the invoices for outside the scope of vat as they are not in the EU and reverse charge them.

Hope this helps.

Ian
 

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• # 82483
• Tue 01 May 2012 03:46 PM

Hi Carole

Sorry to conflict with Ian but...

I don't think you need to reverse charge the supply of services to a non EU country, you should allocate to 'outside scope of VAT' and not include it on your UK VAT return, however if you purchased services from a non EU country then you would need to use the reverse charge procedure.


This is a quote from the HMRC link below:

If the place of supply of your service is not in the EU, then your supply of services is outside the scope of VAT. You don't have to charge EU VAT or include the sale on your VAT Return. 

http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm 

International VAT is a complicated area, if in doubt I would call ICB or HMRC direct.

Kind regards 

Georgina 

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• # 82485
• Tue 01 May 2012 05:22 PM

Hi Georgina and Ian,

Thanks so much for your replies. I phoned HMRC and they echoed what you both said that it was outside the scope of vat  but they didn't mention anything about reverse charges.

They referred me to 741A section 5 which pretty much said what Georgina's link did.

I also asked them if the sale had to be included in box 6 and they said yes though, which conflicts with Georgina's post

"If the place of supply of your service is not in the EU, then your supply of services is outside the scope of VAT. You don't have to charge EU VAT or include the sale on your VAT Return. "

I am inclined to think that the sale shouldn't be included in box 6 as I haven't seen anything to indicate that it should, so  I think I will leave it out.

Thanks again,
 

• Carole King

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• # 82507
• Wed 02 May 2012 11:04 AM

Hello Carole,

to be honest I think both ways are exceptable, when I spoke to an adviser at HMRC they said they like to see if you are having dealings with countries ouside the EU, hence the reverse charge.

Anyway if you are using software that calculates reverse charge then there is no extra work to be done.

Ian 

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