We've received a payment from a customer of us from Gemany. Let's say 10000.
They have a VAT number (in Germany). So they did not pay us any VAT.
Also there were no goods that crossed the boders. We are making some 3D models for them.
The question...
Do I have to show this sum in the box 8 of the VAT return?
I think, NO. Am I right?
2006-11-27 23:32:18 · 2 answers · asked by Ascensio 1 in Business & Finance ➔ Taxes ➔ United Kingdom
not sure, but good luck!
2006-11-28 02:07:26 · answer #1 · answered by Joe Somebody 6 · 0⤊ 0⤋
Why do think it should not be included in Box 8? This box covers supplies to other EC member states so I assume you agree that this work is not such a supply. Fair enough, In this case you are correct in not putting the figures in Box 8.
But, (you knew that was coming, didn't you?) it would appear that you have made a supply of services in this country. So you cannot allow zero rating just because of the nationality of the customer. I would imagine that you normally make standard rated supplies and that this would apply here. So the sum should be declared in box 6 and the relevant output tax in box 1.
I have based the above on the limited information in your question. As the money involved is significant I think you need to get professional advice on this point
2006-11-28 05:25:31 · answer #2 · answered by tringyokel 6 · 0⤊ 0⤋