The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
If a UK relevant business receives a reverse charge service from a supplier located in another country, the supplier will not normally charge any VAT on the services supplied as the place of supply is the shifted to the country where the customer is located (B2B services). The supplier will need to quote a narrative on their invoice which indicates that the customer is required to account for any VAT due on the services on their behalf.
The UK business customer will be required to account for any VAT due on the services received via its UK VAT return. The procedure is called the 'reverse charge'. Since January 2010, most services provided by suppliers within the EU to business customers located in another EU member state are now considered to be reverse charge services and the customer should account for any VAT due on the receipt of these services.
The reverse charge will apply if the following conditions are met:
VATPOSS14300; VATPOSS06300; VATPOSS01350
It should be noted that if the UK customer is a relevant business person and is currently not registered for VAT, the value of the reverse charge services received needs to be taken into consideration when calculating whether the UK VAT registration threshold has been exceeded (see the Overview - registering for
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