I have a question regarding services supplied to Sweden.
If a self employed training consultant runs a training course for a corporate in Sweden, what are the VAT implications?
Her business is too small to register for VAT in the UK. All she has supplied is her time, all the materials are provided by the client. The course is expected to be a one off and the rest of her business is in the UK.
The HMRC helpline advised me that this is outside the scope of VAT in the UK but I think they are assuming that it is education. This is training for a private organisation so no government funding therefore I think it would be VAT-able if her business was big enough. They also said that I should check the registration limits in Sweden, they appear to be nil so does the lady have to register for VAT in Sweden in some way or does the distance selling limit apply?
Hi
Welcome to the forum. We usually suggest people introduce themselves - first name (which you can add to your profile so it pops up under the line on your postings and everyone can address you properly), but of background, experience level/training kind of thing.
In what way is this distance selling? Is it just a written coursebook she is providing?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi,
Thank you for your reply. My name is Kaye and I am an ACA but now working for myself.
I didn't know how it could be distance selling, just clutching at straws for an easy answer!
Kaye
Hi Kaye
You can add your name so that it appears automatically under the line each time you post, by editing your profile.
Great to have another ACA on board!
My head is battered at the mo as I was thinking VAT Moss when you mentioned distance selling, thinking perhaps digital, but as there is some human interaction then I need to ignore myself there! lol. If your client was VAT registered then I would suggest get the Swedish companies VAT number, verify it and quote that in the invoice as well as the reverse charge applies. But Im not sure what happens with non VAT registered UK person - would have to do some comprehensive digging around HMRC website ( I certainly wouldnt take what they tell you as gospel!), or perhaps Les, our resident VAT expert might come along and assist!
Sorry, might come to me later!!!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Thank you! The new stuff on digital services is partly what is causing me the confusion - it is such a hot topic that everything that I search leads me there....
It is good to have some reassurance that I was right in thinking that HMRC were wrong, so thank you for that. Will keep digging myself and see what I find.
1) there does seem to be some human intervention in the delivery of the course. Does the Client go to Sweden to do this? In which case, MOSS does not apply. Additionally, as a B2B supply, MOSS cannot apply; so don't lose sleep over that one!
2) Even if the Client is not registered for VAT in the UK, the Reverse Charge rule applies. All this means is that the recipient company accounts for Sweden VAT using the Reverse Charge rules. As Joanne indicated, do get their VAT number to quote on the Sales Invoice; and annotate the invoice 'Reverse Charge Supply.'
and, finally, belated congrats to Joanne for BotY2015!
1) there does seem to be some human intervention in the delivery of the course. Does the Client go to Sweden to do this? In which case, MOSS does not apply. Additionally, as a B2B supply, MOSS cannot apply; so don't lose sleep over that one! 2) Even if the Client is not registered for VAT in the UK, the Reverse Charge rule applies. All this means is that the recipient company accounts for Sweden VAT using the Reverse Charge rules. As Joanne indicated, do get their VAT number to quote on the Sales Invoice; and annotate the invoice 'Reverse Charge Supply.' and, finally, belated congrats to Joanne for BotY2015!
Hi Les
thanks for point (2), I forgot to go digging to check it, its good to know!
Plus thanks for the congrats - am just waiting for the actual glass award which I understand is due imminently, then I can celebrate again!
Hope you are keeping well!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
