Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 04 Aug 2023 11:02:46 GMT by
Hi, I have a company who is on flat Rate VAT scheme. We provide transport service (Chauffeur) to our EU based clients. I want to know if i would pay flat rate VAT on income generated by these EU clients as i have mixed response from different accountants. One said, income from overseas business is not VAT chargeable under 6.4 Special Circumstances of VAT guide book while other argued, all sales including overseas sales are vat chargeable under flat rate scheme. Your advice on this will be highly appreciated.
Posted Tue, 08 Aug 2023 16:24:04 GMT by HMRC Admin 10 Response
Hello
If these sales invoices are dealt with under the reverse charge, that income would be deemed as outside the scope of VAT and therefore not included on your VAT return .
Posted Tue, 08 Aug 2023 16:31:11 GMT by
Supply of service (Transport service Chauffeur) is provided to clients in UK while clients are EU based. Still it will not be included in VAT returns?
Posted Thu, 10 Aug 2023 11:01:20 GMT by HMRC Admin 10 Response
Hi
Please refer to VAT notice 744A :
The VAT treatment of passenger transport (VAT Notice 744A)
If your services are zero rated then you would include in your turnover ,section 4.1:
Filling in the return if you use a VAT Accounting Scheme

You must be signed in to post in this forum.