VAT on Purchase of Digital Services from EU to UK

We are UK based VAT registered company and received the invoice for the purchase of digital services including 20% VAT from Czech supplier who is VAT registered in both countries. The invoice states both supplier and customer VAT numbers. My understanding is that as a business (B2B) we do not have to be charged UK VAT. Is that correct?

 

Hi. If the Czech supplier is also registered for VAT in the UK and they are supplying the digital services from the UK then it will be a UK supply of services and charged at the VAT rate of 20%  . However if they are providing the services from the Czech Republic then the Place of Supply will be in the UK but accounted for by yourself under the reverse charge procedure. Please see the guidance below: Place of supply of services (VAT Notice 741A)  . Thank you  .

The Czech supplier is providing services from the Czech Republic to the UK VAT registered company. The total amount payable in the invoice included VAT. Should we have received the invoice without VAT, only pay the net amount and then report the VAT amount using the reverse charge mechanism?

Hi traderuk,
Yes, that would be correct.
Thank you.