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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I just moved from Italy to the UK and started working as

Customer Question

Hi, I just moved from Italy to the UK and started working as self-employed web developer. At the moment my only client is the company which I was working for when I was in Italy.
Yesterday I sent them my first invoice, but they told me that they need a "partita IVA" (VAT number) to pay it.
I'm not VAT registered and I don't want and need to register for VAT in the UK.
How can I send them a valid invoice then?
Thanks.
Submitted: 1 year ago.
Category: UK Tax
Expert:  Tony Tax replied 1 year ago.

Hi.

As you aren't VAT registered, the company in Italy will need to charge you VAT so all you need to tell them is that you are not VAT registered. If you were registered for VAT, you would give them your VAT registration number and that would allow them not to charge you VAT as both you and the company are in the EU. See VAT Notice 725 here.

I hope this helps but let me know if you have any further questions.

Customer: replied 1 year ago.
I work for them as a web developer and I'm payed 250 € a day.
I worked ten days, so I made them an invoice for 2500 €.
What do you mean when you say "the company in Italy will need to charge you VAT"?
Must I make an invoice of 2500 € - VAT amount ? And in the case what's the VAT amount I should consider? Italian (22%) or English (20% I think)?
Expert:  Tony Tax replied 1 year ago.

My apologies. I got you and the company, your customer, the wrong way around.

As you are not registered for VAT, you cannot charge it as that would be breaking the law. The company in Italy will need to account for VAT themseleves locally as the customer's country will be the place of supply for most services. See section 15.12 of VAT Notice 741A for information on what constitutes electrinically suppled services and the place of supply of those services.

Expert:  Tony Tax replied 1 year ago.

My apologies. I got you and the company, your customer, the wrong way around.

As you are not registered for VAT, you cannot charge it as that would be breaking the law. The company in Italy will need to account for VAT themseleves locally as the customer's country will be the place of supply for most services. See section 15.12 of VAT Notice 741A for information on what constitutes electronically suppled services and the place of supply of those services.

Expert:  Tony Tax replied 1 year ago.

There may be circumstances where you need to register for VAT in a country other then the UK depending on the local laws on VAT. See section 2.16 here.

Expert:  Tony Tax replied 1 year ago.

Sections 4 and 5 here cover when you may need to register for VAT in Italy. As you are supplying a business customer as opposed to a private customer, the Italian company will be responsible for any VAT due.