Tax Tip Week 27 – Vat on supplying Cross-Border Services from January 2010
For Professional Contractors and Freelancers with VAT registered UK Limited Companies supplying services abroad; important changes come into effect on 1st January 2010.
HMRC are making the changes to simplify and modernise the system and to reduce VAT fraud across the EU.
The current rules based on the ‘place of supply' which is determined by the ‘place of belonging' will no longer apply thus simplifying the VAT system. The current ‘basic rule' that the VAT is charged where the supplier is established will change to the VAT being accounted for where the customer is established.
To see how these changes may affect your business see our guide on VAT on Supplying Cross-Border Services from 1st January 2010