EU VAT question
Thread poster: stephen kells

stephen kells
Local time: 22:30
Spanish to English
+ ...
Aug 2, 2017

I am based in the UK but most of my customers are in France. (B2B). I am under the threshold for VAT in both the UK and France. I still cannot understand my obligations as per Directive 2006/112/EC, and what I need to put down on my bills to my French customers (e.g. should I mention autoliquidation/reverse charge)

I'd be very grateful for any advice anyone can offer.

Thanks,

Stephen.


 

Norskpro
Sweden
Local time: 23:30
Member
English to Norwegian
+ ...
UK tax office Aug 3, 2017

I suggest that you contact the UK tax authorities.
They should know.

https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees


 

stephen kells
Local time: 22:30
Spanish to English
+ ...
TOPIC STARTER
EU VAT Aug 3, 2017

Thanks for your reply, unfortunately, it's stated on the HMRC site that this issue (at least in reference to B2B customers) comes under the aegis of the tax authorities of the country in which the B2B customer resides.

I've already contacted the French tax authorities. They have given me guidance which I think is inaccurate (saying I would have to be registered for VAT in France if I wanted to deal with B2B customers), as it's directly contradicted by this ruling of the European Court of Justice against France: http://curia.europa.eu/juris/document/document.jsf?text=&docid=116689&pageIndex=0&doclang=fr&mode=doc&dir=&occ=first∂=1&cid=723001 (articles 20 and 41, 42, 43 are most relevant).

The more I look, the more I think I am not obliged to register for VAT in France unless I go over the French threshold for VAT, 33,900 euros, but I am obliged to mention 'autoliquidation' on my invoices - I am really looking for confirmation of that.


 

Tom in London
United Kingdom
Local time: 22:30
Member (2008)
Italian to English
Your obligations Aug 4, 2017

stephen kells wrote:

I am based in the UK but most of my customers are in France. (B2B). I am under the threshold for VAT in both the UK and France. I still cannot understand my obligations as per Directive 2006/112/EC, and what I need to put down on my bills to my French customers (e.g. should I mention autoliquidation/reverse charge)

I'd be very grateful for any advice anyone can offer.

Thanks,

Stephen.


Assuming that for tax purposes you are exclusively resident in the UK and are below the VAT registration threshold, your only obligations are to UK tax law. Specifically, your invoices to your French customers (or Italian, or German, or anywhere else) should simply state "VAT not applicable in compliance with UK law".

End of.

Don't let anyone tell you different. If anyone has a problem, it's THEIR problem, not yours.

Let me repeat: your only obligations are to UK tax law. In fact it would be illegal to make any attempt to comply with any other law.You should not be attempting to talk to the tax authorities of any other jurisdiction, since they have nothing to do with you (unless you are also resident in France as a taxpayer) (???).

It does seem that you're making a mountain out of a molehill. The whole point of VAT exemption is to **simplify** things - not to make them more complicated! Get yourself an accountant.

[Edited with additional remarks]

[Edited at 2017-08-04 09:52 GMT]


 

Christine Andersen  Identity Verified
Denmark
Local time: 23:30
Member (2003)
Danish to English
+ ...
This has been discussed earlier here Aug 7, 2017

Here is a link to an earlier thread.
http://www.proz.com/forum/translation_in_the_uk/183104-charging_vat_when_invoicing.html

I have to admit the way VAT in the UK is a recurring theme on this site and with the CIoL makes me glad I live in Denmark!
Here it is very simple: I have to be VAT registered if I earn any kind of regular income from my work as a freelancer. The procedure for very small companies is simple for a professional economist or accountant, and many translators manage without an accountant. As long as I show the client's and my VAT numbers on the invoice, I don't have to worry about VAT for clients in other countries, and that is that. icon_smile.gif

[Edited at 2017-08-07 20:03 GMT]


 

Tom in London
United Kingdom
Local time: 22:30
Member (2008)
Italian to English
Even simpler here! Aug 8, 2017

Christine Andersen wrote:

Here is a link to an earlier thread.
http://www.proz.com/forum/translation_in_the_uk/183104-charging_vat_when_invoicing.html

I have to admit the way VAT in the UK is a recurring theme on this site and with the CIoL makes me glad I live in Denmark!
Here it is very simple: I have to be VAT registered if I earn any kind of regular income from my work as a freelancer. The procedure for very small companies is simple for a professional economist or accountant, and many translators manage without an accountant. As long as I show the client's and my VAT numbers on the invoice, I don't have to worry about VAT for clients in other countries, and that is that. icon_smile.gif

[Edited at 2017-08-07 20:03 GMT]


Here in the UK it's even simpler! I don't need to be VAT registered at all. This has never been a problem with any of my clients, in any of the EU countries where they are based.

Unfortunately some colleagues in the UK don't seem to be well-informed icon_frown.gif


 


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