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Posted Tue, 05 Sep 2023 16:59:32 GMT by EUMAN
A Finnish company provides IT services to a customer company based in the UK, therefore we export & invoice IT services to UK customers (monthly 13k euros invoice value) excluding vat (no vat charged). Our UK client/customer claims the Finnish company should not charge VAT on invoices issued by the Finnish company as the contract is their contract with a company outside UK, therefore it's "VAT neutral". Question the Finnish company should or should not be charging VAT to UK Clients due to VAT neutrality ?
Posted Wed, 06 Sep 2023 11:43:27 GMT by HMRC Admin 10
If an overseas company are supplying IT services to a UK business which belongs in the UK then the VAT should be accounted for by the UK business under the reverse charge procedure and the overseas business would not charge VAT.
Please see the guidance below:
Reverse charge
Posted Wed, 06 Sep 2023 11:49:18 GMT by EUMAN
Thanks. What about corporation tax in Finland when trading with UK based customer ? The Finnish company would trade export IT services & invoice UK clients for its services provided.
Posted Fri, 08 Sep 2023 08:42:22 GMT by HMRC Admin 20

We wouldn't be able to advise on Corporation Tax in Finland.

Thank you.


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