For the service element the same applies you do not need to charge as you supplied the service there. Goods in this context means movable items, not fixed installations. For VAT purposes, this normally depends on whether they are VAT registered or not. 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. These special rules only apply to the transport itself. Could someone advise me on VAT matter please as I received conflicting responses from our accountants and from the customer. 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’. Something we will need to really get a handle if we crash out of the EU. This page has been updated because the Brexit transition period has ended. You need to charge VAT if it's a UK supply. 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. For further information about this, please refer to the HMRC website. 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. VAT is also due on any gift sent from Jersey to the UK that is valued over £39 (including the postage and packing). If the supplier’s total supplies of goods to un-registered customers in the UK in the current calendar year exceed this, then the supplier must register for VAT in the UK and charge UK VAT on its UK sales. But some supplies are subject to special rules that will affect their place of supply. 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… Currently, VAT on goods and services acquired in France by a company established in another Member State of the EU for … construction, refurbishment, conversion, repair, maintenance and demolition, professional services of estate agents, architects, surveyors and so on, property management and maintenance services. VAT Notice 708: buildings and construction has more about the VAT rules for land and property. Sometimes it is collected and retained by the major retailer. 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. The provisions of the Principal Directive are broadly reflected in UK domestic VAT law. In revenue collection terms, VAT in the UK is a very significant tax indeed. You must check with the tax authority in that country to find out how to treat the services you’re supplying. 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. A business can only have one business establishment, but can have several fixed establishments. This is the case even if your head office belongs in the UK for supplies that it makes in the UK. You can change your cookie settings at any time. There are special arrangements for charging VAT on the international supply of electronic services. It will take only 2 minutes to fill in. Postponed VAT Accounting What Does It Mean? We (as UK VAT registered ltd) installed commercial refrigerators for UK registered retail chain shop in Jersey. 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). We use cookies to collect information about how you use GOV.UK. With services, deciding the place of supply can be complicated. The services of a driver, pilot, operator or crew come under the general rule. So SERVICES are outside the scope so you don't charge vat but you DO include the sales value in Box 6. 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 … Jersey GST is totally independent (they are not in the EU and not part of the UK tax system) … The important thing is where the service has been supplied rather than who or what it was supplied to. For passenger transport the place of supply is where the transport takes place. Special rules apply for work carried out on goods. UK VAT refunds. However the accounts payable department of the customer stated we need to re invoice applying 5% of Jersey GST. Such supplies are said to be ‘outside the scope’ of both UK and EC VAT". Generally VAT number equals business and no VAT number equals consumer. Land and property includes the land itself plus any buildings or other structures, (including installations such as oil production platforms). If the customer is a non-business customer then most supplies relating to events are subject to VAT where they’re carried out. VAT up to UK’s distance selling threshold (£70,000). 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 . In some cases, the place of supply is determined by what service is supplied, rather than where the supplier or the customer belongs. Work on goods The place of supply is where the goods are when the work is physically carried out. For freight transport the place of supply varies according to whether the customer is in business. If you’re supplying services relating to land and property, the place of supply is always where the land or property is located. An increasing number of countries are taxing VAT or GST on electronic services supplied from abroad to consumers. Don’t include personal or financial information like your National Insurance number or credit card details. 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 … For services, the general rule for B2B supplies is that the place of taxation is the place where the business receiving the services is … 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. Under this logic, a business that is not VAT registered will count as a consumer. 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. 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). Find out which country’s VAT rules to use when supplying services abroad. 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. Machinery installed within a building is not considered to be land or property. Global VAT Compliance files EU VAT MOSS returns in various jurisdictions throughout the EU. 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. 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 … If you’re in the UK and the place of supply of your service is in an EU country, you do not pay UK VAT. 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. A new exception (from 1 January 2015) relates to electronically supplied services (e.g. The VAT rate to be applied will be dependent on the goods being supplied. The MOSS VAT return is separate to and in addition to the normal UK VAT return. 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. 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. 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). So unless you have an office or base there and are (or need to be) registered as a GST trader. 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. The services supplied by MCL to DPSL are business-to-business (B2B). The New Brexit Deal: What Accountants Should Know. VAT paid on services supplied in the UK or abroad cannot be refunded. 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. The place of supply of admission to an event is where the event takes place, wherever the customer or supplier is located. GST taxation was introduced on 6 May 2008, at a rate of 3%. A very important distinction for EU VAT is whether someone is a consumer or or whether they are business. 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. 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. 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. 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’ VAT Notice 744B: freight transport and associated services has more about the VAT rules for freight transport services. You’ve accepted all cookies. We’ll send you a link to a feedback form. Customs in Jersey cannot process VAT refunds on goods bought in the UK. The first step is to establish the value in the VAT return period of all bought-in services from outside the UK. 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. To help us improve GOV.UK, we’d like to know more about your visit today. Sales value in Box 6 takes place outside the scope of UK ) VAT 708!, e-books ) to an individual or non-business organisation inside of the customer stated we to. 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