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Posted Mon, 21 Oct 2024 19:07:15 GMT by Rahul2024 prajapati
Hi Everyone I have company incorporated and VAT Registered in UK. i am receiving digital services from Canada, USA, UK, and india. should i pay tax under reverse charge on receiving these supply? In the Uk vat return, tax on reverse charge will be report in BOX 1 and the same amount of tax shown in box 1 shall be report in box 4. and such purchase shall be report in under full value of the supply in box 6 and full value of the supply in box 7 (total value of purchases). Further, please also advise if does it make any difference if My entity registered address is UK address but my VAT registration certificate address shows Indian Address and i operate all business activity from India only.
Posted Mon, 28 Oct 2024 15:24:32 GMT by HMRC Admin 19 Response
Hi,
The reverse charge would apply if your business belongs in the UK and you would complete the boxes on your VAT return as you have stated. However, if you are a n established taxable business, then your business will not belong in the UK and so the reverse charge will not apply. The guidance states:
The reverse charge applies where:

The place of supply is the UK
The supplier belongs outside the UK
You belong in the UK
The supply is not exempt (this includes exempt supplies subject to an option to tax)
For supplies not within the general rule, you’re VAT registered in the UK

You can see guidance here:
Reverse charge
Non-established taxable persons — basic information
Thank you.

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