Hi - can anyone advise - is Dublin part of the EU since brexit? Therefore services charges to an Irish resident by a UK company no longer applicable? I think the answer is yes, so no VAT applied.
For services there’s never been a difference in treatment between EU and non-EU - what matters is the “place of supply”. If you’re selling B2C outside the UK then the place of supply is usually the UK and UK VAT applies, if you’re selling B2B then the place of supply is usually the customer’s country and UK VAT doesn’t apply (but their country’s rules may require them to apply a reverse charge).
If you’ve been charging UK VAT to Irish customers before then you should continue to do so now.
Thanks @ian_roberts but I thought EU now becomes effectively non EU as a result of Brexit - e.g. If I normally charged a French individual - I no longer have to as France is EU (but classed as non EU for VAT) on services for B2C.
Like I said above, if you’re selling services (as opposed to goods) then even when we were in the EU there has never been any difference between EU and non-EU customers in terms of when and how much you charge them VAT. The only thing that changed at the end of December is that you no longer have to submit an ECSL.
Thanks Ian - ok I was confusing myself. Thankfully I hadn’t reversed the French client I charge VAT to yet (correctly it seems). I’ll charge the VAT on all EU B2C sales as normal.
All non-UK B2C sales as normal, that’s the point I’m trying to make. It doesn’t matter whether or not they’re in the EU.
So I’m more confused - I had confirmed with the VAT unit via the onlne messaging that if I had a customer for example in the US or an non EU country (i.e. before Brexit) - I did not have to charge VAT as the services are treated as supplied where the customer belongs (I’m classed as professional consultant/accountant). Therefore no VAT is payable on those non UK, Non EU (before Brexit). The same wording is still there now, so I would assume EU based are also now not Vatable? Or I am mistaken?
12. B2C services of a professional, technical, financial, intellectual or other intangible nature supplied to customers outside the UK
This section applies if:
- you belong in the UK
- you supply B2C services to customers who belong outside the UK
- those services are included in the list in paragraph 12.2
Where this applies, your services are supplied where your customer belongs and so are outside the scope of UK VAT. It’s the nature of the service that you should consider, rather than your professional qualification or status.
12.2 Services treated as supplies
The following services are treated as supplied in the place where the customer belongs when provided to non-UK non-business customers:
- services of consultants, engineers, consultancy bureaux, lawyers, accountants, and other similar services - data processing and provision of information, other than any services relating to land
If you are unsure on how you should be accounting for any particular VAT then I would advise that you speak to your accountant. We can then assist you on how to do what you need to in QuickFile
Thanks - I’ll contact the VAT unit again as the above has only confused me further.
From my experience with vat hmrc will leave it very open to interpretation. Your accountant may be better to say what should be done here.
For anyone else reading - if you fall under the special rules for services (i.e. special rules listed under 6.4 onwards on VAT notice 741A) - the place of supply rules apply for B2C (non UK and non business) - i.e. where the customer lives - so any non UK clients billed via a UK company do not require VAT, as you supply B2C services to customers who belong outside the UK (formerly it said provided the customer is established in a non EU country). I’ve just confirmed this with my accountant and the VAT unit. So are outside the scope of UK VAT. I fall under the ones listed under 12.2 so no VAT is chargeable to non UK B2C clients.
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