VAT on services to Switzerland

happywarmgun

OK. It looks like I am about to win a contract for supplying some services (specifically the creation of bespoke web software) to a company registered and based in Switzerland.

I think they are going to let me invoice (and them pay) in GBP so I don't have any currency risk - but I cannot decipher what I am supposed to do re VAT.

Do I just charge them as if they are in the UK - or do they get an off because they aren't in the EU. I guess it matters a lot if it adds 20% to their price!

nikki1520

What you need to look at is the place of supply of services leaflet, available at https://www.hmrc.gov.- notice 741a

this will tell you whether you treat the sale as in the Uk ( supplied where performed) or as in Switzerland ( outside the scope of VAT)

it very much depends on the exact nature of the work you are doing and where you are doing it

happywarmgun

Thanks for that link. I started to read the leaflet and my head began to swim. I read it both ways. I think in the first instance I'll err on the side of caution and charge them VAT - I think they're a big enough company they either wont blink or will get back to me if they think they are not liable.

In the meantime I think I'll try and get advice from HMRC...

JasonLVC

The place of supply of web design is an electronically supplied service and where both the supplier (you) and the customer (Swiss) are in business then the place of supply is where the customer is based.

As the customer is in Swizterland and outside of the EU for VAT purposes, your sale to the customer is outside the scope of UK VAT (ie, you do not charge VAT on the sale).

Your invoice needs to clearly show the customers Swiss address and a clear description of the work done (web design). An outside the scope of VAT sale means VAt is not charged but you are still entitled to reclaim any input tax (VAT you reclaim) involved with the transaction.