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VAT Refunded related to Brexit?
Hi all,
This is a bit of an odd one and not sure if this is the place to ask but I thought some of you might have some experience.
For a number of years i've been renting dedicated servers in the EU and I'm based in the UK one paticular supplier in NL has recentley emailed me out of the blue to say they have adjusted all my invoices (since brexit) for the following reason.
This due to fact that VAT was invoiced although the UK is not a EU member anymore.
Therefore you should have received an invoice without VAT.
Of course this is great having a nice credit sum, but I've not seen this with any other suppliers I'm with across .DE etc and don't want to fall behind on anything.
anyone else experienced this?
Many Thanks
Comments
They are incorrect.
They need to legally apply to MOSS VAT Scheme and should be charging you VAT. VAT applies to the country the service is "enjoyed in" IN your case the UK which has a VAT rate of 20%. They cannot just stop charging you VAT.
What they probably misunderstood is that their Dutch MOSS no longer accepts money for the UK; they have to register in the UK to pay the tax in the UK directly (as is Clouvider registering in The Netherlands to pay tax in the EU...)
Thanks both, it's kind of what i expected I wonder how I steer them in the right direction. I certainly don't want to end up with a bill somewhere down the line
I haven't faced such an issue in my USA server. Be happy with the credit sum and enjoy your server with them.
Hasn't the MOSS now changed to OSS (One Stop Shop) and the same rules apply. I am not qualified TAX agent so i could be wrong.
Give them these links:
https://www.belastingdienst.nl/wps/wcm/connect/nl/btw/content/wat-doen-btw-diensten-in-uit-buitenland-vanaf-1-juli-2021
https://www.gov.uk/vat-registration/when-to-register
Silly question, is there a link i could read or share with the provider. Don't get me wrong happy to have my servers cheaper and a nice cheeky refund but I don't want anyone to have issues later on.
MoSS System just not working for UK anymore as said before by @Clouvider and @frog .
They have to register with HRMC in UK directly (works out very easy via a Online Form if you are outside UK) and then get a UK VAT Number etc etc. to file and pay VAT in UK for their UK clients.
Big mistake what they are doing.
Huge thanks for all the help I will share the links and see how i get on
I'm guessing the company you're referring to begins with an N
I'd also be interested in the outcome as it's just happened to me, and like yourself I don't want any nasty surprise bills due to their accounting error !
I'm sceptical about them being able to claw back the money. People like credits, returning them... Not so much.
As @HostSlick said, big mistake.
I believe by not paying VAT, you have to pay the equivalent in the UK assuming you run under a registered business. That's what I was told.
It must be a mine field for company’s, although I shared the links above and they’re investigating I think this sums it up on HMRC. What is conflicting on Dutch link above it says for supplier not to add VAT to invoice, but if they do that how do they then do the below.
The place of supply of digital services
If you are a business making supplies of digital services to UK consumers, those supplies are liable to UK VAT. If you make supplies of digital services to consumers outside the UK these are not liable to UK VAT. They may be liable to VAT in the country where the consumer is based. If you supply digital services to consumers via a third party platform or marketplace, the digital platform is responsible for accounting for VAT on the supply instead of you.
If your supplies are liable to UK VAT you will need to register for UK VAT if you are based outside the UK.