Ltd company client from Norway - VAT

Hektor_159

Hi All,

I own a Ltd company - IT Software service, voluntary VAT registered. Unfortunately I make below £85k a year but being VAT it's more beneficial for my client as I'm doing only businesses to business service.  I have a client from Norway, they have VAT reg. number.At this point I am confused, should I create standard UK VAT invoice and send it to my client or that is related with Reverse Charge Rules on services to the EU or any other VAT rules, like for a country outside EU. I know formally Norway is outside EU, but I know they have a lot of agreements with EU, now UK is also outside EU, but both companies - mine and clients - are VAT registered. 

I don't have a lot of clients and so far, within UK, everything was quite easy (with self-accounting software). If that make any difference I am using FreshBook.

Could you please advise me on the above or direct me where to find some answers?

Thanks
Michal 

DullGreyGuy

If you were selling a product it'd be simple, you would charge UK VAT but at 0%. Subject to Norway's rules you normally would charge any overseas VAT, especially if its over circa €150, and its the importer's responsibility to deal with any local VAT/Duty due for importation.

Services are more complicated though and you are best off reading https://www.gov.uk/guidance/vat-how-to-work-out-your-place-of-supply-of-services or asking your accountant if you have one

macman

Isn't this something that your own accountant should be able to advise you about?

J_B

Hektor_159 said:

.......... but being VAT it's more beneficial for my client as I'm doing only businesses to business service.  ..............

Don't really understand this - why is it "more beneficial" ?

DullGreyGuy

J_B said:

Hektor_159 said:

.......... but being VAT it's more beneficial for my client as I'm doing only businesses to business service.  ..............

Don't really understand this - why is it "more beneficial" ?

Because the OP can reclaim the VAT on their supplies so can charge their clients less on a net basis. The VAT they have to charge is just a cashflow consideration as their clients can recover it. 

Hektor_159

Thank you for your replies. I don't have an accountant yet, I am using FreshBook as I have few clients per year only, and so far all were based UK, so I didn't have a problem. I need to contact an accountant  then. Thanks for clarification, I was thinking with services is a bit more complicated than with goods, and it's out of my league. 

Regard @J_B , as @DullGreyGuy explained, it's all about reclaiming VAT , especially if  you are buying and selling. 

Thanks
Michal