Purchasing services from USA - VAT exempt or Reverse charge

JudyC

Services purchased from USA, showing an EU VAT number on invoice/receipt and in sterling. I thought purchases from USA were exempt but I am not so sure now and reading HMRC website I believe that the customer who is in the UK must account for VAT by a reverse charge? Has anyone else had the same scenario? Would appreciate some feedback please.

KoopaCooper

Hmm, I've had a little experience with reverse charge...

The purchase was made from the USA, but the invoice has an EU VAT number on it, you say?

Is the company the purchase was made from incorporated in the USA, or in the EU with a branch in the USA?

If it's incorporated in the USA, I would say that the purchase is out of scope. If it's a US branch of an EU-based company, I'd say it most likely falls under the reverse charge (which essentially nets out to zero anyway).

I'd be interested to hear if others with more experience of reverse charge regulations agree with me on this treatment?

JudyC

Thanks for you feedback.
The invoice/receipt has an American address on it but they are on companies house as an EU company here in the UK hence the EU VAT number I presume. Looks as if EU co is a branch of the American company.