Invoicing EU Clients for consultations

tldkid

Hi, I recently opened a new company which is just me since I realised I could advise EU clients on a specialised subject and get paid for it. My TO is well under the threshold for VAT. Two invoices later, both clients are onto me saying that their accountants want a VAT invoice. I have explained I am not VAT registered but no-go. It might be something to do with the recent change in EU Vat law requiring something called MOSS which requires VAT registration. But that seems to be for e-books, software and the like. My accountant seems a bit vague on it. Can anyone throw some light on this please?

CKhalvashi

It may be a requirement to register in the country that you're trading with, if not in the UK.

InsideInsurance

There is no requirement to register for VAT and if your not you cannot issue a VAT invoice.

That said, if you are advising businesses that are going to be VAT registered then it may be sensible to register for the flat rate VAT scheme. I dont know exactly if there is any difference to it if you are only advising other EU companies who are themselves VAT registered but your accountants should be advising you on these things

CKhalvashi

InsideInsurance wrote: »

There is no requirement to register for VAT and if your not you cannot issue a VAT invoice.

In some EU countries for DSR's, there is a requirement for being VAT registered. I know there are at least 2, but can't remember what these are off the top of my head.

That said, if you are advising businesses that are going to be VAT registered then it may be sensible to register for the flat rate VAT scheme. I dont know exactly if there is any difference to it if you are only advising other EU companies who are themselves VAT registered but your accountants should be advising you on these things

What II said.

antrobus

CKhalvashi wrote: »

In some EU countries for DSR's, there is a requirement for being VAT registered. I know there are at least 2, but can't remember what these are off the top of my head.
....

Malta, Spain, and Sweden have nil VAT registration limits.
http://www.vatlive.com/eu-vat-rules/vat-registration-threshold/

tldkid wrote: »

Hi, I recently opened a new company which is just me since I realised I could advise EU clients on a specialised subject and get paid for it. My TO is well under the threshold for VAT. ....

The general rule for the supply of services to a business customer is that the place of supply is where the customer belongs. Thus, if you are in the UK and your customer is in another EU country, you may need to register in that country, which will have quite different VAT registration limits.

https://www.gov.uk/vat-how-to-work-out-your-place-of-supply-of-services

tldkid

Thanks to everyone for your replies. It seems to be a case of common sense vs. reality. Example: a small non VAT-registered UK company makes a one-off sale to an EU state. In any case his invoice would not have VAT as its for the receiver to declare it at his side. Common sense. In reality, the receivers accountants scream that all invoices must have the suppliers VAT number because thats the way it must be. Conclusion - don't try and trade without establishing your VAT status in advance.

colesy

I have a number of Italian clients. Although I'm VAT registered, it's the client who accounts for VAT (in the Italian system) via the reverse charge arrangements which requires merely that my client's VAT number goes on the invoice, not mine.

zaax

Thanks to Amazon and star bucks its more difficult than that.

https://www.gov.uk/register-and-use-the-vat-mini-one-stop-shop

antrobus

zaax wrote: »

Thanks to Amazon and star bucks its more difficult than that.

https://www.gov.uk/register-and-use-the-vat-mini-one-stop-shop

That's a link to the new VAT MOSS scheme. That only applies if you are a supplying "digital services" to "consumers". The OP is supplying services which are not digital to customers who are not consumers, and therefore it does not apply.