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Posted Fri, 08 Dec 2023 10:09:49 GMT by
If a UK company uses a company based in the EU for IT services like software development where the customers are based globally including the EU and UK, how is the VAT handled in this case?
Posted Tue, 12 Dec 2023 10:07:32 GMT by HMRC Admin 2
Hi,

If you are subcontracting the work to an EU supplier then there will be 2 supplies taking place.

The first supply will be from the EU company to the UK company which should come under the reverse charge procedure.

Place of supply of services (VAT Notice 741A)

You will then be making a supply to your customers .

If your customers are businesses please see the guidance here:

Place of supply of services (VAT Notice 741A)

If your customers are individuals then please see the guidance here:

Place of supply of services (VAT Notice 741A)

Thank you.
Posted Tue, 12 Dec 2023 16:08:24 GMT by
Thank you for the detailed reply, this is the conclusion I also found with my research. I hope this posts helps someone else in the same situation.

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