VAT on foreign invoices

Jo2010

Hi,

A client of mine is wanting to raise a sales invoice in Euros (to a French Co) and has asked if there should be VAT on this. I have said no but would like to double check if anyone could confirm please i would be grateful.

Thanks

wildgoose1uk

I would have to check but I should think it would have to fall within the VAT (or French equivalent) of one of the countries but not both.

HMRC are pretty good at having all the angles stitched up.

wildgoose1uk

Exporting goods to France

A VAT-registered UK business does not need to charge VAT on goods exported to France, provided it obtains the French customer’s TVA registration number (including the FR prefix) and shows it on the invoice. It must also keep documentary proof of export.

The UK business is still able to reclaim any UK VAT on the goods which it is exporting, subject to the normal rules about reclaiming input VAT.

If the French customer is not registered for TVA, and the UK business is not registered for TVA, then UK VAT must be charged. No VAT is chargeable on goods which would normally be zero-rated or exempt when supplied in the UK (for example, books, children’s clothing and some food items).

Every year the UK business should check whether its level of sales to unregistered customers in France requires it to register for TVA under the distance selling rules. Broadly, these require a UK business to register for TVA, and then charge TVA instead of UK VAT, if its sales of goods to customers in France who are not registered for TVA are over €100,000 in a calendar year. Such a registration is also optional at lower levels of sales, but as rates of French TVA are typically higher than the UK VAT equivalent, this is unlikely to be favourable.

http://www.brighton-accountants.com/blog/vat-uk-france/

Worth taking advice on but in the first instance Google is your friend.