Forum Categories › INTERNATIONAL VAT ON CROSS-BORDER TRANSACTIONS › UK Ltd company – billing French company for services (in EU) – VAT or Not › Reply To: UK Ltd company – billing French company for services (in EU) – VAT or Not
This would work. From your perspective – the place of supply of your services is regarded as France, so your charge falls outside the scope of UK VAT. The French company would have to account for VAT using the reverse charge. They would calculate French VAT on your invoices based on their VAT rate, and pay it over to their tax authorities. But (on the same French VAT return) they could also reclaim that VAT as an input to their business activities – so no overall VAT cost to them.
It’s broadly similar to what you would have done pre-Brexit when they sold goods to you. They wouldn’t have charged you French VAT and you would have calculated UK VAT, paying it to and reclaiming it from HMRC on the same UK VAT return.