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7 July 2020 at 19:57 #55651olly183Member
I’m self employed (UK National) but tax resident in Germany, I’ve just (voluntarily) retrospectively registered for VAT in Germany from the 1st Jan 2020. My clients are businesses in the UK and I supply services not goods. I have 3 invoices to UK VAT registered businesses in 2020 that were invoiced without VAT, but even with german VAT registration there is no VAT due so I don’t need to amend the total invoiced, all that is missing from the original invoices is my new German VAT number and the reverse charge notice.
Do I need to amend the invoices?
If so, How?
Is it a big deal for my customer?
Added complication is that the original invoices are in the previous UK tax year, pre 5th April and obviously any amended invoices/credit notes would be post 5th April. But the same German tax year…
Olly7 July 2020 at 21:40 #56019VAT-adviserMember
The VAT rules are that place of taxation (for VAT purposes) is determined by (i) where the services are supplied and (ii) status of the customer receiving the service i.e. whether a business or consumer.
The place of supply for business to business transactions (B2B) is the place where the business customer ‘belongs’. Hence services to EU businesses, the place of supply is where the business customer ‘belongs’, hence VAT should not be charged to all EU businesses.
The place of supply for business to consumer transactions (B2C) is the place where the supplier ‘belongs’ irrespective of the location of their customer. Hence the place of supply for services to EU customers is UK and VAT should be applied regardless of the location of the customer. Please note B2B (Business-to-business) means commercial transactions between businesses and B2C (business-to-consumer) means transactions between a business to natural persons/private individuals. Also note services to EU businesses that are not VAT registered are counted as a consumer.
There are range of suggested wording to be included on your invoice including your vat number, customer vat number. You can annotate the invoice, ‘reverse charge supply,’ or if you want to be more legal-sounding, you refer to the EC VAT Directive 2006/112/EC.
In your case you may simply reissue the invoices and issue credit notes; and explain to customers.
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