Tax on a purchase order
Thread poster: Louisa Berry

Louisa Berry
United Kingdom
Local time: 22:29
Member (2009)
German to English
+ ...
Jun 26, 2009

I have just received a purchase order from an agency (in Germany) for some work. I am based in the UK but do not reach the VAT threshold for VAT. On the purchase order the agency has stated the amount for the work, and the VAT. However I can't/won't charge them VAT. Should I just submit my invoice for the actual amount excluding VAT and add a line saying that I'm not VAT registered?

Thanks

Louisa


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Edward Vreeburg  Identity Verified
Netherlands
Local time: 23:29
Member (2008)
English to Dutch
+ ...
Likely NO VAT Jun 26, 2009

there are a few options:

1. This is intra-community delivery (you are both businesses - you are in the UK, they are in Germany) you should not charge VAY

2. they are not a business (or have not VAT regsitration for some reason) -> you should charge VAT if you are a company

3. You are not registered for VAT, they are - no VAT

At least that is the way it works in the Netherlands...


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nordiste  Identity Verified
France
Local time: 23:29
English to French
+ ...
invoice without VAT Jun 26, 2009

Louisa Fox wrote:

I have just received a purchase order from an agency (in Germany) for some work. I am based in the UK but do not reach the VAT threshold for VAT. On the purchase order the agency has stated the amount for the work, and the VAT. However I can't/won't charge them VAT. Should I just submit my invoice for the actual amount excluding VAT and add a line saying that I'm not VAT registered?


Basically yes, you charge the amount without VAT.
Ask your tax office for the exact formula. In France for instance there is a very specific line to quote with reference to the tax regulation number.


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Charlie Bavington  Identity Verified
Local time: 22:29
French to English
Get it corrected Jun 26, 2009

Louisa Fox wrote:

Should I just submit my invoice for the actual amount excluding VAT and add a line saying that I'm not VAT registered?

I think it would be wisest to try to get them to re-issue the PO without VAT, in case it causes later confusion (totals not matching properly), rather than just wait until you invoice them, in case it delays payment.


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Tax on a purchase order

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