Normally a travel company would have to register for VAT in the country outside the EU so that it can reclaim VAT that is paid when buying a trip from the outside company. Is there a better system for TO`s in the UK? Thanks,
VAT TOMs
Answers
Hi I want to ask something else guys
"
5.3 The scope of the reverse charge
The reverse charge does not apply to supplies of services where both the supplier and the customer belong in the UK. It only applies where services are supplied in the UK by a supplier belonging overseas. Services which, under the place of supply rules, are supplied in another country are outside the scope of UK VAT. Such services can only be subject to tax in that country."
If I am buying a trip from outside EU and my company is in the UK, does this mean that the supplier, the real supplier is outside the UK and the customer is in the UK, does this mean I can use the reverse charge mechanism or no?
Under TOMS, the margin of any EU passenger transport element will be subject to the standard UK VAT. However, there are three ways to set up sales so that the UK's zero-rating can be applied.
1
Hi,
And how about the reverse charge, can I apply it when I am being supplied with services by countries outside Europe?
Filed Under:
Accounting