This is a bit puzzling. We've been advertising in UK press for the past 4 years and, as non residents, have always been exempt from VAT charges.
We're currently trying to advertise with a new magazine and they are refusing to cancel the VAT unless we have an exemption number?
Can anyone shed any light on this please? Is this a change to the law / system?
Thanks
Muzzie
I'm not an accountant, but my understanding is that for cross-border purchasing in general you have to be able to quote a VAT (TVA for French registered traders) number to the supplier. If you aren't registered for TVA then you don't qualify. Maybe there are special rules for print advertising or else you've been lucky.
(Sits back & waits for an expert to cut that to pieces.)
I agree with Quillan, I deal withour VAT and we are specifically asked on the return about purchases and sales in other EU countries.
However printed paper is VAT exempt in the UK, perhaps your first supplier thought this applied to supplying advertisments and the second suplier does not? Although I deal with print I do not deal with advertising so you may well be advised to look up the regulation.
http://www.hmrc.gov.uk/businesshelp/
My first thought is that if the company is VAT registered then the VAT is payable. Sorry !
I cannot agree with you. I work in publishing and I was specifically told by les impôts, later backed up by my accountant, that I should not charge TVA on work done for English clients, even though we were both TVA/VAT registered in our respective countries. Admittedly this was invoicing from France, to England, rather than the other way round. What I had to do was to ensure that my SIRET or TVA number (if you know the former you can work out the latter) appeared on all paperwork, and invoices should carry the wording 'Exonération de TVA art 262 ter I CGI'.
I should point out that the last invoice to which that applied was about 18 months ago, but I doubt if things have changed substantially in the meantime.
You are actually both correct, the type of sale is a service and between eu countries is exempt (or zero rated), the proof of being a business is what will matter for the provider. A siret or TVA in france number is proving you are a business and therefore eligable but in the UK no equivilant of a siret number - you can just 'be a business' - and unless you register as company or choose (from income) to register for vat there is no real proof in the eyes of the tax office and therefore companies registered for vat must charge you vat.
You could try reclaiming the vat but this is long winded and in my experience does not happen easily.
Abbo2 (ACMA)
If your business supplies goods to VAT registered customers in other EC Member States and those goods are removed to another EC country the supply may be zero-rated provided you meet certain conditions. You must:
If you do not meet all these conditions you must charge and account for VAT in the UK.
You must also submit details to HM Revenue & Customs and record details separately on your VAT Return. If you have a high level of removals you may need to submit Intrastat Supplementary Declarations
You can find more information about trading with VAT registered businesses in other Member States in Notice 725: The Single Market.
That makes sense, Albert.
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