Canadian customer selling software services to UK VAT registered customer

Hi There, If a Canadian registered parent (Not registered for UK VAT) company sells software services to its UK subsidiary (registered under HMRC for VAT) delivered electronically. - How VAT will be charged under the reverse charge mechanism ? or - Can we consider this as an intercompany transaction with no VAT? - Please advise the VAT implication with an example if possible? Thanks in advance !

Hi

If the parent company supplies these kind of services then the UK business customer would need to account for the VAT on the reverse charge procedure.

Please see the guidance below as to how the reverse charge procedure works:
Place of supply of services (VAT Notice 741A) Section 5

Thank you