Explore our AccountingWEB Live Shows and Episodes, Sign up to watch the Accounting Excellence Talks, Enter the 2021 Accounting Excellence Awards, 10,000 Euro VAT MOSS Registration Threshold, High Income Child Benefit Tax Charge - NI, Intelligent processing for accountancy practices, How to solve a problem like consolidation, Brexit reality: Personal deliveries to a business, IRIS updates Elements practice, tax and AML tools. We undertake a wide range of work for a number of businesses in Jersey, and I'm concerned as to whether we should be charging them VAT. I have just become VAT registered and have put the 20% into BP and entered my VAT number. No vat to be charged but does the EC Reverse charge apply? +You can buy goods from the UK without paying VAT if you are:+ +buying goods from a UK business registered for VAT and having them dispatched to your Jersey address, or+ +buying from the UK via mail order or the internet+ +The HMRC website explains how UK businesses registered for VAT can export goods by post, free of VAT. In short, you can exclude the VAT from your invoices and forward the obligation of paying the correct VAT to the customer. Hi all, I just had a customer in Jersey (UK), I have shipped it but I have just noticed that Amazon has not charged him VAT (Jersey is exempt from VAT), but this does mean however that the amount I have made on this order is substantially less than usual and actually I have ended up making a fairly large loss. I wonder if any of you have any idea if I should be charging VAT to clients of mine located in Jersey. You don't have to charge EU VAT or include the sale on your VAT Return . If the service relates to land or property situated in the UK, VAT still needs to be charged. You must keep the VAT number of your customer or other proof that they are a business if they are not VAT registered. The hard drives for the hosting are physically in USA. Despite the fact that you are in the UK, because your customer is in Guernsey the services are deemed to occur their and are taxable according to the local rules there. Whilst the customer is based in Jersey and the website is hosted in the US, use an enjoyment (in an economic sense) appears to take place in the UK. VAT is due on any commercial item sent from Jersey to the UK including anything sold by members of the public (for example, anything you sell on ebay). The rate of VAT you apply to each item is the rate that HMRC stipulates that you need to charge for that item. Therefore, you will only be charged with the product price + shipping. In practice this means that you don't have to account for UK VAT and, because Guernsey doesn't have a VAT system, not VAT … Find out if you're eligible to reclaim GST under the DIY house builder scheme. As the sale & the repair will take place in the UK should we still charge VAT or should it be zero rated? If you found the Jersey VAT Calculator useful, we kindly request that you rate the calculator, if you would like to add feedback it is very welcome. However, you can still deduct the VAT that you paid on any related expenses to make that sale. To correctly calculate the figures for the VAT Report (Summary), you must configure your tax codes. However this check is not the same one that is required when Customs carry out a check on people who are bringing goods into the island themselves. I would therefore email your supplier & tell him to remove the GST & re-issue the invoice. At the moment, Printify does not charge VAT. Sometimes, it is a combination of both. EU’s reverse charge VAT – making life easier for you. If you're not VAT registered in the UK and the reverse charge applies to the service, then it counts towards your taxable turnover for detirmining whether you should be VAT registered or not. GOV.UK explains how refunds of VAT may be made. We are a UK based VAT registered company providing a service (watch repair) to a customer who is from Guernsey. Supply VAT should not be charged and import VAT will be chargeable at the border. Find out if you're eligible to reclaim GST under the DIY house builder scheme. If you are a consumer or a business that does not provide a valid VAT number in the delivery country, you may be charged VAT in the delivery country, or your order may be subject to border taxes, customs duties and fees levied on importation ("Import Fees"). The basic rule for the place of supply of service is: business to business: place of supply is the country in which the customer belongs. For further information about this, please refer to the HMRC website . The basic rule for the place of supply of service is: business to business: place of supply is the country in which the customer belongs. VAT for consumers on GOV.UK. This entitles you to not pay the VAT at customs; instead just record it in your next VAT return as a book entry only (‘reverse charge’). I'm not a VAT registered company and don't display VAT included or excluded against my product prices, where do I stand with this? Posted: Aug 4, 2012 By: NickMoore Member since: Jul 13, 2012 #2. a1anm UKBF Enthusiast Free Member. If you can show that the VAT has been refunded to you, the GST on the VAT will be refunded. VATable items are any goods or services that are subject to VAT at the standard, reduced or zero rate. You don't have to charge your customers VAT, but you may consider raising your retail prices to adjust for our VAT charge. NickMoore UKBF Newcomer Free Member. The services are not available and not directed to people outside of Jersey. Customs in Jersey cannot process VAT refunds on goods bought in the UK. You can indicate on the customs clearance document that you are using the local import VAT scheme. At the end of the month you must complete an EU sales listing return for that month but this can be done online. Resulting in you not having to struggle with understanding complicated VAT regulations in other countries, or across border VAT returns. e.g. So unless you have an office or base there and are (or need to be) registered as a GST trader. If the service relates to land or property situated in the UK, VAT still needs to be charged. This EUSL applies to both goods and services. The code is JS. However, when ordering goods customers might be asked for Jersey's VAT Country Exemption Code. If you are a small business or if you use the reverse charge method, you may not include VAT on your invoice because you do not pay any. The customer, for his part, can claim the VAT on the purchased product or service as input tax and thus reclaim it from the tax office. GST refunds for visitors to Jersey. The rate of VAT you apply to each item is the rate that HMRC stipulates that you need to charge for that item. They may remove or zero-rate the tax, but they are not obliged to. In practice this means that you don't have to account for UK VAT and, because Guernsey doesn't have a VAT system, not VAT … VAT is also due on any gift sent from Jersey to the UK that is valued over £39 (including the postage and packing). As the sale & the repair will take place in the UK should we still charge VAT or should it be zero rated? And it depends whether they are a business or private customer I am based in another EU country but as far as I know the rules are the same. GST refunds for visitors to Jersey. GST quick guide. Exempt: There is no VAT on certain financial, medical or educational providers. Please note, providers charge a 0% VAT rate and are entitled to claim VAT on their purchases. Many thanks. Regardless of the value, you must pay VAT on the item. Once you are VAT registered in one EU country, sales delivered from that country to local private customers or customers in other EU countries are governed by the EU VAT distance selling rules. (general builder). VAT registration will be mandatory for non-UK established sellers from 1 January 2021 who make sales to UK customers. VAT is due on any commercial item sent from Jersey to the UK including anything sold by members of the public (for example, anything you sell on ebay). 22nd Oct 2011 10:10 . Resulting in you not having to struggle with understanding complicated VAT regulations in other countries, or across border VAT returns. But if you do this yourself, ... For B2C transactions this UK VAT will be charged and collected by the seller but for B2B transactions the VAT will be revere charged to the customer. If the customer isn't a relevant business person, it's a UK supply Jersey isn't an EC member state and the supply of a website is an electronically provided service. For imports then the Jersey authorities will apply the GST on import (as here with VAT on goods from the USA). VATable items are any goods or services that are subject to VAT at the standard, reduced or zero rate. In other words is the decision to charge VAT based on the billing or shipping address? 2) If your customer in business ( this does not always mean they are VAT registered) 3) Where does the customer belong. Customs in Jersey cannot process VAT refunds on goods bought in the UK. You may be able to reclaim VAT on goods or services related to your business. However, when ordering goods customers might be asked for Jersey's VAT Country Exemption Code. These meant where you’re selling “digital services” (this would be most things where you create it once then can re-sell an identical item lots of times, eg ebooks, apps, music/video etc) to an EU consumer, you need to charge VAT based on where your customer is. Your business must collect the data on customer locations and sales and submit this to your local MOSS, which in turn carries out the process of paying the VAT to each national authority. Essentially, the rules around sub-£135 imports means that foreign sellers sending goods into the UK to consumers will need to charge UK VAT and apply to be part of the UK VAT system when supplying goods with a value of £135 or less to end consumers (that is, non-VAT-registered individuals). If they provide you with a European VAT # you do not have to charge VAT. It also confirms that Jersey is outside the VAT area. You cannot charge GST unless you are a Jersey business. ... is the customer a relevant business person? We are a UK based VAT registered company providing a service (watch repair) to a customer who is from Guernsey. Check if your customer has an EU VAT number ; You may still deduct the VAT that you paid on related expenses, such as for goods or services purchased specifically to make those sales. Value Added Tax (VAT) is a consumption tax that is applied to nearly all goods and services that are bought and sold for use or consumption in the EU (In this case, the 27 EU member states + the UK (until the end of the transition period).).. The most common questions about GST asked by individuals and businesses, and links to the GST schemes. ​If you need a certificate, email the Taxes Office with the subject heading 'Certificate of Status' and include your business tax reference. The work we undertake includes: Bespoke software development; Remote technical support; Re-selling software packages; Any guidance appreciated! Non-UK established sellers must charge UK VAT on their sales to UK customers at the point of sale and will have ongoing VAT compliance obligations (VAT invoicing, VAT returns, VAT payments). GST refunds for DIY home builders. 733 79 In the EU or the UK as EU … If you think the general rule applies, and your customer is in business in Jersey, I don't think VAT is chargeable. We requested specific advice from HMRC - the response was that the client is based in Jersey (the company being invoiced) and that the supply is classed as "Out of Scope" for VAT. In this case the business is located outside of the EU and so the supply is treated as outside the scope (OSS) of UK VAT and the sale is shown on the VAT … You will be charged GST on the total cost (including freight) of goods bought in the UK when it is more than £135. Or can’t I ? This includes all … These traps include: the assumption that VAT is similar to US sales tax or GST (it is not), and a belief that VAT does not apply to non-European businesses (it does). Regardless of the value, you must pay VAT on the item. They also have a trusted trader status where GST is not charged on import but there is no reclaim on the … For VAT purposes any goods supplied to the Channel Islands are regarded as exports and may be zero-rated, T0 by default, subject to the normal HM Revenue & Customs (HMRC) conditions. So BP already knows not to charge VAT to Channel Islands. You need to charge VAT if it's a UK supply. The guidance on place of supply wasn't clear in this instance. GST refunds for DIY home builders. We are VAT registered but the customer is not and they have advised us that they do not have to pay VAT so we shouldn't charge them for it? It's up to you to decide in which country to register. GST refunds for visitors to Jersey. This includes copyright, royalties, licences, advertising, consultants, engineers, lawyers, accountants, banking and insurance. Configure the tax codes for GST . The invoicing party is also obliged to pay the VAT to the tax office. How do I make up for this VAT difference ? Most companies supplying goods commercially do not charge VAT as it is not in their interest to risk losing business by charging a price that appears to be too expensive because it has the VAT included. Goods that … EC Sales List doesn't apply. … 98 36 Did you mean "billing address in the UK"? In short, you can exclude the VAT from your invoices and forward the obligation of paying the correct VAT to the customer. VAT registered business customers. Did you get HMRC's advice in writing? We've been asked to create a website for a client in Jersey. Jersey isn't an EC member state and the supply of a website is an electronically provided service. Only businesses can register for VAT; members of the general public can’t, because VAT … You cannot charge GST unless you are a Jersey business. Also many overseas contractors were allowed to register in the past, even though their customer was able to apply the reverse charge. For imports then the Jersey authorities will apply the GST on import (as here with VAT on goods from the USA). The customer has requested not to pay VAT on the service as he is from Guernsey. UK VAT does not need to be charged on most intellectual or intangible services supplied to a customer who belongs in Jersey. 2) If your customer in business (this does not always mean they are VAT registered) 3) Where does the customer belong. If you sell goods to a business and these goods are sent to another EU country, you do not charge VAT if the customer has a valid EU VAT number. You should, GST on tips, service charges and gratuities, Importing unaccompanied personal goods and paying customs duties, buying goods from a UK business registered for VAT and having them sent to your Jersey address, buying goods from the UK via the internet or mail order. You must keep the VAT number of your customer or other proof that they are a business if they are not VAT registered. You should however fill out a Value Added Tax EC Sales list form. > Given the fact that this customer has purchased from the UK, does not give them the right to reduced prices. 0% (Zero) VAT on all exports, tea, coffee, milk, bread, books, children’s clothes and children’s shoes, oral medicine for humans and animal. EU’s reverse charge VAT – making life easier for you. There is no minimum VAT registration threshold for non-UK established sellers. The customer has requested not to pay VAT on the service as he is from Guernsey. You will be charged GST on the total cost (including freight) of goods bought in the UK when it is more than £135. I believe you are correct. If you opt for b., many countries offer a deferred import VAT payment scheme. If you’re supplying services from the UK that come under use and enjoyment rules and are effectively used and enjoyed outside the UK, they will be outside the scope of UK VAT. Thank you. GST quick guide. business to consumer: place of supply in the country in which the supplier belongs. VAT is considered part of your goods' total value, and you must pay GST on the total value to have goods released from Customs. Under the reverse charge procedure it is the customer rather than the supplier of the service which has the obligation to account for VAT on the supply, the customer essentially charges itself local VAT and will take a simultaneous input credit for that VAT (in line with its VAT recovery entitlement). However, different VAT rules apply to services supplied to overseas customers, or in connection with land located overseas. The VAT treatment of certain legal services can vary … You can buy goods from the UK … In the reverse charge procedure (reverse debit), the tax liability is transferred from the invoicing party to the invoice recipient. For those with full recovery, this transaction will be VAT neutral. For individuals in VAT zones such as Jersey and Guernsey they can, and they do tend to, ask for the VAT back, which you wont pay to HMRC anyway So unless you have an office or base there and are (or need to be) registered as a GST trader. Therefore, VAT may very well need to be charged, at least on a proportion. Goods delivered from the UK. If such a service would otherwise be treated as supplied in a country that isn't a member state and is to any extent effectively used and enjoyed in the UK, the supply is a UK supply to that extent by virtue of paragraph 9(2) of Schedule 4A to VATA 1994. What is MOSS VAT? VAT Answer. VAT is also due on any gift sent from Jersey to the UK that is valued over £39 (including the postage and packing). A: You can’t charge VAT to your customers unless you’re registered for VAT yourself; that is, you have applied to HMRC to be registered and they’ve accepted your application. The VAT you charge to your customers is called output VAT. Service charges, and other additions, attract GST if added by the business, but tips made voluntarily do not . Note on the invoice that the reverse charge procedure or the small business regulation has been applied. Where will the website be hosted? 5,180 928 If for services you will have to declare the uk vat in box 1 and 4 and net … Sign In or Register to comment. A: You can’t charge VAT to your customers unless you’re registered for VAT yourself; that is, you have applied to HMRC to be registered and they’ve accepted your application. The client is based in Jersey, selling products and services to Jersey people. You must usually charge your customers VAT at the rate that applies in your country, except for telecommunications, broadcasting and electronic services, which are always taxed in the customer's country (where a private person has a permanent address or usually resides, or where a non-taxable person is established). What you've been told seems to me to be contrary to the comments in their place of supply of services manual at VATPOSS15500. Hi, I'm selling a product to Jersey, the customer is asking me to remove the VAT from the product price for them. In his case the client company is based in Jersey, the Director lives in UK, the website is hosted in the US, and the site is to advertise a gite for rent in the Dordogne (to customers based in UK). Thanks (0) By Cardigan. If the customer is a non-business customer then most supplies relating to events are subject to VAT where they’re carried out. On your invoice you must show the customer's vat number and state that the supply is subject to the reverse charge rules. Can anyone advise what are the rules about charging VAT when selling to a customer based in Guernsey, Channel Islands? Where will the website be accessed from by visitors? Customers in Europe buying products ranging from furniture to pet food from UK companies are receiving unexpected bills for VAT and customs …
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