EC Sales and flat Rate VAT

Emily-Kate

Hi,

I have a VAT query re the new EC services rules and need to apply it to a client on the flat rate VAT scheme.

My client is a business consultant and in February presented at a conference in Helsinki on behalf of his customer, who is VAT registered in Finland.

I have trawled through the relevant VAT notices (741a and 733) and have come up with the following:

It is a B2B supply, performed in Finland, so is beyond the scope of UK VAT and the customer was not charged VAT. I have validated the FI VAT number. I have completed an EC sales list, using indicator 3. As the deadline for this was 14th I have already filed it.

For the VAT return, I have excluded the value of the invoice from box 6 the total turnover figure, (as is beyond the scope...) and applied the flat rate - 12.5% being the revised rate for a business consultant. I have not put anything in box 8 as the sale is services not goods. Not filed yet - due end April.

Have I interpreted the new rules correctly?

As usual, your feedback would be hugely welcome!

deanshepherd

Sounds correct to me.

Emily-Kate

Dean,

Thanks for that - your agreement helps a lot.

I have been trying to get through to the VAT helpline, but they are always busy and aren't offering a queueing system. I will go with this, and pick up the pieces next quarter if it turns out to be incorrect.