If you are providing services to businesses based outside of the UK but within the European Community (EC), you will need to make sure your invoices show the correct information and you charge VAT correctly.
If you are VAT registered and you invoice another VAT registered business in the EC, you will not charge VAT on the services you provide to that client. You will however, need to complete a few simple steps before invoicing your overseas client.
Check your clients VAT registration
You will need to request your clients VAT registration number so you can check its validity. Once you have their registration number, you can validate it using the European Commissions website. It is recommended that you retain a copy of the evidence of validation for your records.
If you experience problems validating their registration you can refer to the HMRC website for further information on EC VAT registration number formats.
Show additional information on your invoices
Invoices to your clients overseas will need to display their VAT registration number. When you create your contract in inniAccounts you can include their VAT registration number and country code prefix in the Invoice name and address box.
We also recommend that when you enter your bank details for payment in the Invoice message box in your contract settings, you include your banks IBAN and BIC codes. This helps to ensure the payment arrives safely in your account. You can normally find your banks IBAN and BIC codes on their website.
Invoicing your client
You will need our overseas invoicing service so that you can raise invoices for customers based overseas. This will allow you to set the location of your customer in the software and also select the currency you wish to invoice them in.
EC Sales List
If you are VAT-registered in the UK and supply services to VAT-registered customers in another EU country, you will need to tell HMRC about those supplies using a EC Sales List.