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Posted Wed, 24 May 2023 12:14:46 GMT by Kristyna
Hello, I am a translator, a UK sole trader, not VAT registered. If I sell my services to EU based VAT paying companies, does reverse charge apply? If so, do I need to clearly state "VAT: reverse charge" or something of that nature on the invoices I issue? Or is it ok if I do not put this on my invoices? Thank you in advance! Kristyna
Posted Thu, 25 May 2023 16:11:25 GMT by HMRC Admin 10
Hi.
If you provide these services to a company overseas then under the Place of Supply rules they will be deemed as being Outside The Scope of VAT and the reverse charge will apply in the member state where the company belongs.
You are under no obligation to state that the supply will be subject to reverse charge but is recommended in order for the business to know how to deal with the supply on their VAT returns if the company are registered for VAT in their member state.
Please see the information regarding Place of Supply of Services;
The place of supply rules for services
Thankyou.

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