Don’t worry we won’t send you spam or share your email address with anyone. These are mainly intangible services that include advertising, intellectual property rights, legal services and accountancy. View more information on other countries, or find out more about VAT. There are various rules that apply, depending on: whether you’ve more than one business location, the place where your business or your business customer ‘belongs’. Irish suppliers will not normally charge Irish VAT on services to a business established outside Ireland. Jersey imposes the VAT in the name of General Sales Tax. Ex gratia payments to jobbing gardener-Taxable? The system of VAT in the EU is now governed by Council Directive 2006/112/EC of 28th November 2006 on the Common System of Value Added Tax (normally referred to as the Principal Directive). The VAT treatment of this specific sub-category of services – electronically supplied services – has been subject to much change and coverage over the past year, particularly in respect of the MOSS scheme, but it is helpful to understand where these services … If the customer is a non-business customer then most supplies relating to events are subject to VAT where they’re carried out. If you’re supplying services relating to land and property, the place of supply is always where the land or property is located. The MOSS VAT return is separate to and in addition to the normal UK VAT return. Thank you for replaying. We issued an invoice addressed to UK central finance office for the labour and equipment without any VAT based on  place of supply rule outside of scope of EU and UK VAT. The UK was required to introduce a VAT system pursuant to its accession to what is now known as the European Union on 1st April 1973. Jersey GST is totally independent (they are not in the EU and not part of the UK tax system) … The VAT rate to be applied will be dependent on the goods being supplied. This is the case even if your head office belongs in the UK for supplies that it makes in the UK. Instead, the business customer will self accountfor the VAT in their State. The VAT liability of legal services should be relatively straightforward. You must check with the tax authority in that country to find out how to treat the services you’re supplying. The supply is outside the scope of UK VAT. If a foreign company is not making taxable supplies in the UK but is incurring UK VAT on local goods or services, then the VAT may recovered through a VAT reclaim. If the customer isn't a relevant business person, it's a UK supply Jersey isn't an EC member state and the supply of a website is an electronically provided … If any GST is due there, there is a reverse charge system in place for taxable services supplied but that is not your concern; you do not need to charge GST. You need to charge VAT if it's a UK supply. VAT up to UK’s distance selling threshold (£70,000). Correct VAT to apply on services provided in Jersey for UK registered customer, Explore our AccountingWEB Live Shows and Episodes, View our 2020 Accounting Excellence Firm Awards Finalists. Goods delivered from the UK Total online retail spending online grew by 33.4% in 2007 to a record £10.9bn and UK online sales are predicted to reach £28.1bn by 2011 – 8.9% of all retail sales. We’ll send you a link to a feedback form. Global VAT Compliance files EU VAT MOSS returns in various jurisdictions throughout the EU. As of 2015 the EU applied the Mini One Stop Shop which enables trader to register in one country and report and remit VAT for the entire EU. For imports then the Jersey authorities will apply the GST on import (as here with VAT on goods from the USA). You will need to contact the foreign tax authority in that country for advice. Postponed VAT Accounting What Does It Mean? How to get back control of self assessment, The TaxCalc Survival Guide to Self Assessment, Exports to Europe - should accountants be advising, Sunak eyes corporation tax hike in March Budget, Look after your team as tax season takes its toll, Automate workflows to ease tax busy season. This situation includes costs incurred in the repair of goods sent out of Jersey and holidays booked through UK or foreign operators or companies to be taken out of Jersey. If you belong in the UK and your customer is in an EU country, you may need to register in that country. This page has been updated because the Brexit transition period has ended. If you are supplying services to a business customer in another European Union (EU)Member State you should do the following: 1. obtain the business customer’s Value-Added Tax (VAT) number and confirm its validity 2. insert the customer’s VAT number on the invoice and retain records of the transaction 3. issue an invoice indicating reverse chargewill apply 4. obtain a letter from the tax authorities if a business customer is a new business and a VAT number is not available 5. establish if the supply is exempt in th… Work on goods The place of supply is where the goods are when the work is physically carried out. In revenue collection terms, VAT in the UK is a very significant tax indeed. With services, deciding the place of supply can be complicated. Don’t include personal or financial information like your National Insurance number or credit card details. They confused me as I dealt before with Gibraltar (the same rules I assume) and did not charge VAT. Could someone advise me on VAT matter please as I received conflicting responses from our accountants and from the customer. Such sales are now deemed to have a place of supply of the customer (was place of supplier). They’re often called brokers or agents, and their customer is the person or organisation who they supply their service to. Which country’s VAT rules to use when charging VAT on services If you’re in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules . These include such services as: entertainment and cultural performances - including sports events, the right to attend exhibitions, conferences, meetings or seminars, ancillary services, such as payments for cloakrooms or similar facilities. You cannot charge GST unless you are a Jersey business. websites, software, e-books) to an individual or non-business organisation inside of the EU (but outside of UK). They also have a trusted trader status where GST is not charged on import but there is no reclaim on the GST return (which speeds up imports and means food for example is not sat rotting at the quayside). What is correct? UK VAT refunds. So SERVICES are outside the scope so you don't charge vat but you DO include the sales value in Box 6. I believe you are correct. Which Tax Code to use - well Zero Rated Income and Exempt would both work as they appear in Box 6 and don't result in a vat charge. The rule for working out the place of supply of freight transport is if you supply services to a: non-business customer, the place of supply is where the transport takes place. The ‘place of supply’ is the place where you make a supply and where you may be charged and pay VAT. Since 1984, there has been the possibility for legal services to be outside the scope of UK VAT when provided to a customer resident/established outside of … Sometimes this is remitted to Her Majesty’s Revenue and Customs in the United Kingdom (“HMRC”). VAT paid on services supplied in the UK or abroad cannot be refunded. If it takes place outside the UK, then it falls outside UK VAT rules. For freight transport the place of supply varies according to whether the customer is in business. Sometimes it is collected and retained by the major retailer. For VAT purposes, this normally depends on whether they are VAT registered or not. But for some supplies, you may need to register and account for VAT in the country of supply. Goods in this context means movable items, not fixed installations. VAT is due on any commercial item sent from Jersey to the UK including anything sold by members of the public (for example, anything you sell on ebay). But some supplies are subject to special rules that will affect their place of supply. The provisions of the Principal Directive are broadly reflected in UK domestic VAT law. Jersey GST is totally independent (they are not in the EU and not part of the UK tax system) and do their own thing and the tax is raised on the island only. The location of the business customer to whom the services are supplied can be: 1. where he or she has established their business 2. where that person’s fixed establishment is located 3. or 4. in the a… The services supplied by MCL to DPSL are business-to-business (B2B). For short term hires the place of supply is where the vehicle is physically given to the customer. For further information about this, please refer to the HMRC website. Currently, VAT on goods and services acquired in France by a company established in another Member State of the EU for … Land and property includes the land itself plus any buildings or other structures, (including installations such as oil production platforms). construction, refurbishment, conversion, repair, maintenance and demolition, professional services of estate agents, architects, surveyors and so on, property management and maintenance services. The United Kingdom is a member of the EU and, as a member state is obliged to apply VAT to a range of goods (see European Union value added tax). The UK VAT is then calculated and entered as if it were output-tax (in Box1) It is then also entered as if it were input-tax (in Box 4) In a fully taxable UK business the net effect in terms of VAT payable should be ‘nil’ If you have a business establishment in the UK and establishments in other countries, you must look at what each establishment does in terms of supplying services. It will take only 2 minutes to fill in. UK VAT may need to be charged on services performed in the Islands or to clients based in the Islands, depending on the nature of the service supplied. For VAT purposes any goods supplied to the Channel Islands are regarded as exports and may be zero-rated, T0 by default, subject to the normal HM Revenue & Customs (HMRC) conditions. Jersey. Jersey's regulations mirror the provisions of the EU VAT Directive on the place of supply of services so that businesses don't get taxed twice - ie by paying both VAT and GST. There are special arrangements for charging VAT on the international supply of electronic services. VAT is charged in accordance with the local legislation in each country or region. Intermediaries provide a service of arranging or facilitating the supply of goods or services. This includes all services connected to cultural, artistic, sporting, scientific and educational events, or entertainment. We (as UK VAT registered ltd) installed commercial refrigerators for UK registered retail chain shop in Jersey. Jersey. A means of transport is something that can be used for transporting passengers or goods, and includes: It does not include freight containers, static caravans or racing cars. Find out which country’s VAT rules to use when supplying services abroad. If the UK and the EU are unable to reach a deal and the UK makes a ‘no-deal’ exit, the VAT refund procedure would change immediately. A business can only have one business establishment, but can have several fixed establishments. Jersey residents who purchase goods online and have them delivered to Jersey are often charged the UK VAT 20%. If, for example, your company has its head office in the UK, but has a French subsidiary that supplies services to local businesses, then the French company belongs in France for VAT purposes. For most supplies of services, the place of supply is decided by what’s known as the ‘general rule’. For supplies of business to business services (B2B), the place of supply is the place where the business receiving the services is established. A very important distinction for EU VAT is whether someone is a consumer or or whether they are business. We use cookies to collect information about how you use GOV.UK. All content is available under the Open Government Licence v3.0, except where otherwise stated, Which country’s VAT rules to use when charging VAT on services, Broadcasting, telecommunications and e-services, The general rule and the place of belonging, Registering for VAT under special rules for place of supply, charge and account for VAT according to UK VAT rules, special arrangements for charging VAT on the international supply of electronic services, VAT Notice 708: buildings and construction, VAT Notice 744B: freight transport and associated services, supplying services to non-business customers outside the UK, Exports, sending goods abroad and charging VAT, Place of supply of services (VAT Notice 741A), VAT rules for supplies of digital services to consumers, EU country codes, VAT numbers and enquiry letters for EC Sales Lists, How to report EU sales made on or before 31 December 2020 for VAT, Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases. So unless you have an office or base there and are (or need to be) registered as a GST trader. These special rules only apply to the transport itself. This can be the supplier or the buyer of the goods or services, or both. For services, the general rule for B2B supplies is that the place of taxation is the place where the business receiving the services is … For the service element the same applies you do not need to charge as you supplied the service there. The important thing is where the service has been supplied rather than who or what it was supplied to. A new exception (from 1 January 2015) relates to electronically supplied services (e.g. See About VAT on Digital Products and Services sold by Amazon for more information on VAT on digital products and services. The B2B place of supply rule is that the supplies take place where the customer belongs (where it is established), i.e. You can change your cookie settings at any time. VAT is also due on any gift sent from Jersey to the UK that is valued over £39 (including the postage and packing). I will escalate it to customer AP supervisor as it might be some internal staff incompetence. Check how the new Brexit rules affect you. Customs in Jersey cannot process VAT refunds on goods bought in the UK. However the accounts payable department of the customer stated we need to re invoice applying 5% of Jersey GST. See How to purchase as a VAT registered customer within the EU if you want to use your VAT registration number when purchasing from Amazon. If you’re an intermediary, then the place of supply of your services depends on whether your customer is in business. A list of EU VAT contacts can be found in Notice 725. However, different VAT rules apply to services supplied to overseas customers, or in … If you’re supplying services to non-business customers outside the UK, you may not need to pay UK VAT. GST taxation was introduced on 6 May 2008, at a rate of 3%. Working out the place of supply when you’re hiring out a means of transport depends upon the length of time that you hire out the vehicles. The rule for working out the place of supply of work carried out on goods is if you supply services to a: business customer, the place of supply is the place is where the customer belongs, non-business customer, the place of supply is where you physically perform the work. Conversely, where a French business supplied services to a UK customer then normally the supplier would apply French VAT to his invoice. VAT Notice 744B: freight transport and associated services has more about the VAT rules for freight transport services. The rule for working out the place of supply of intermediary services is if you supply intermediary services to a: non-business customer, the place of supply is the same as the place of supply of the service you’re arranging. Regardless of the value, you must pay VAT on the item. The general rule for working out the place of supply of services, apart from those covered by special rules is if you supply services to a: business customer, the place of supply is the place where the customer belongs, non-business customer, the place of supply is the place where the supplier belongs, your business establishment (your head office or only office) is in the UK, and you have no fixed establishments (subsidiary offices or agencies) in other countries, your business establishment is in the UK and you have fixed establishments in other countries, but the UK office is the one mainly concerned with supplying services, your business establishment is not in the UK but you have a fixed establishment here which is the one where you supply services from, you do not have either a business or fixed establishment in the UK or elsewhere, but your business is a corporate body (for example, a limited company) which is registered in the UK, you do not have a business or a fixed establishment in the UK, or anywhere else, but the UK is your usual place of residence. 30 days for other vehicles, these come under the general rule. 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