First Previous - Page 1 of 1 - Next Last

Invoicing for global services

  • Member PM.Dip
  • Practice Licence
  • 10 posts
  • # 118921

Hello

My client sells services globally and currently issues receipts for these B2B sales. 

I suggested they need to provide invoices for these sales, even if they are not sent to their customers, but they are arguing that the businesses never ask for them and that it shouldn't be necessary as no VAT is due. 

Can anyone help clarify what is necessary?

Many thanks

 

  • Member
  • 35 posts
  • # 118923

Hi Becky,

As long as I know, you still need invoices to record income even if it is not due for VAT.

In case HMRC ask to see invoices you need to have them.

 

Thank you very much.

 

Kind regards,

Mehul Dave MICB

  • Member PM.Dip
  • Practice Licence
  • 10 posts
  • # 118925

Hi Mehul, 

 

Yes, this is my understanding, too

 

Many thanks

  • Member
  • Practice Licence
  • 7 posts
  • # 118931

HI Claire,

 

I am interested in your question here.  My understanding was that you only have to provide an invoice if both you and the customer are VAT registered - if you are not VAT registered a sales receipt is sufficient documentation.

The following implies the above

https://www.gov.uk/invoicing-and-taking-payment-from-customers

If the customers are businesses in Europe then reverse charge VAT may apply - and an invoice is required.  I.e. no VAT is charged on the supplier invoice but they must state that the sale is subject to reverse charge - and the business customer must account for the reverse charge in their own country.  It is easy to get one wrong so your client needs to check on this.

Services supplied to countries outside europe are generally outside the scope of VAT and therefore I assume a sales receipt is sufficient documentation.

I would be interested to know whether this is incorrect. 

Best

Nell



Edited at 29 Jul 2020 03:05 PM GMT

  • Member
  • Practice Licence
  • 7 posts
  • # 118933

Nell said:

HI Claire,

 

I am interested in your question here.  My understanding was that you only have to provide an invoice if both you and the customer are VAT registered - if you are not VAT registered a sales receipt is sufficient documentation.

The following implies the above

https://www.gov.uk/invoicing-and-taking-payment-from-customers

If the customers are businesses in Europe then reverse charge VAT may apply - and an invoice is required.  I.e. no VAT is charged on the supplier invoice but they must state that the sale is subject to reverse charge - and the business customer must account for the reverse charge in their own country.  It is easy to get this wrong so your client needs to check on this.

Services supplied to countries outside europe are generally outside the scope of VAT and therefore I assume a sales receipt is sufficient documentation.

I would be interested to know whether this is incorrect. 

Best

Nell



Edited at 29 Jul 2020 03:05 PM GMT

 

  • Member
  • Practice Licence
  • 7 posts
  • # 118935

Nell said:



Edited at 29 Jul 2020 03:05 PM GMT

 

First Previous - Page 1 of 1 - Next Last
bottomBanner
loading