VAT on services in UK but invoiced to a business in the Netherlands

Hi.
An IT company (registered for VAT) provided services to an address within the uk, but the invoice will be made out to the company which is in the Netherlands. Is it correct to add VAT on the invoice as the services were within the uk? or should it be zero rated because the company is based in the Netherlands?
Thanks
An IT company (registered for VAT) provided services to an address within the uk, but the invoice will be made out to the company which is in the Netherlands. Is it correct to add VAT on the invoice as the services were within the uk? or should it be zero rated because the company is based in the Netherlands?
Thanks
0
Comments
I think because the supplies are being made out to a business which is in the Netherlands you can zero rate this supply under the reverse charging mechanism, i.e. the Netherlands company should account for the output VAT (and input VAT) not you.
Try and get the VAT registeration number or business letter head for the Netherland company just in case there is a VAT inspection and the inspector wants proof that the Netherlands customer is a business.
I agree with Dcollins. Under the changes to VAT in January 2010 it is more about the place of supply. I have found this, which may help:
http://www.hmrc.gov.uk/budget2009/bn74.pdf
Regards
I ask because I don't understand the "place of supply" rules, I thought that the "place of supply" was determined by the "general rule", i.e. if the customer is a business the place of supply is where the customer belongs, and if the customer is an individual (i.e. not a business) then the place of supply is where the supplier belongs.
http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm
So I'm confused; is the answer:
1) The sale would have to have output VAT on it because the customer is a non-business customer, i.e. an individual, or
2) The sale would not have output VAT on it because the supply is outside of the UK and therefore outside the scope of UK VAT
However if where you supplied the services in the UK is not a fixed establishment for the Dutch company then I believe VAT may not be chargeable, as it will be accounted for under the reverse charge rules by the customer. It looks like it all depends on whether they provide services from the base in the UK as to whether it is termed a fixed establishment.
Willing to be corrected though, EU VAT is mad!!!
Agreed!
Although sometimes performance of services in the UK could still be non-vatable if "enjoyment" is outside the UK. You've got to love VAT!
Regards
Dean
I have a client who is providing services to the middle east for a french company. I know that there will not be any VAT, but because the services are outside the EC, does this mean that they are outside the scope of VAT, which also means that he can earn over £73,000 without having to register?
I would greatly appreciate your thoughts on this.
Thanks guys.
http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1081183723&r.l1=1073858808&r.l2=1083126673&r.l3=1083126677&r.l4=1081167393&r.s=sc&type=RESOURCES
I hope that helps