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Hi all,
I’m a British cameraman, working between the UK and Brazil.
I’m self-employed in the UK and vat-registered.
In Brazil I have a separate company.Work I do for Brazilian companies goes through the system there and I pay tax on there.
I sometimes do work in Brazil for UK or EU companies (services, not goods). For this work I charge via my UK self-employed company. Normally I charge VAT on that (even though I’m pretty sure I don’t need to… the service being provided in Brazil) although UK companies don’t have an issue with that as they just claim it back. I did a job in Brazil for a Danish company recently but here didn’t charge the VAT and completed that extra form alongside the VAT return.
I have a job coming up in Brazil for a Swiss company. As far as I understand the Swiss company can’t claim back UK vat so I need to get my ship in order here! Do I need to charge VAT? The WHOLE of the service will be provided in Brazil, although I will charge via my UK setup.
Assuming I DON’T charge the VAT, I don’t know how to input that on my VAT return, as there isn’t a section for WORK COMPLETED OUTSIDE THE EU AREA etc. Or is there? This is my main confusion with this, and the reason I have up until always charged VAT – that I don’t know how to input it correctly on the return.
Thank you.
I guess your services are for customers who are in business.
Place of business for services is where the buyer of the services is located.
So if you are providing services to a UK based customer, and details recorded in box 1 and box 6.
If you are supplying services to a customer in a member state of the EU, that supply is subject to the VAT rules of that member state and not those of any other country and such supplies are said to be ‘outside the scope’ of UK VAT and no VAT charged. You however complete Box 8 and EC Sales list. When to complete box 8 of your VAT Return, HMRC will automatically send you an EC Sales List to complete.
If the place of supply of your service is not in the EU, then your supply of services is outside the scope of VAT. You don’t charge VAT or include the sale on your VAT Return.
Thank you SO much! Now I get it – work that is outside the scope of VAT doesn’t need to be declared on the VAT return AT ALL, only on the annual tax return. That was the sticking point that I hadn’t been able to conceive.
Also for clearing up that Place of Business for services is where the buyer of the services is located.
Thanks again – what a wonderful forum!
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