Other services from Great Britain
August 30, 2017 | 25,00 EUR | answered by StB Patrick Färber
I (German entrepreneur) receive an invoice from the UK with a GB VAT ID number. It is for a service (trade fair costs for a fair in London). The invoice states 20% VAT. Is this correct and how should I book the invoice?
Dear questioner,
this is (unfortunately) correct, because for trade fair services the usual place determination for other services in the EU (=recipient location=place of supply) does not apply, but § 3a para. 3 no. 3a UStG is relevant, i.e. where the entrepreneur (i.e. your invoice issuer) actually provides the service, so in London, UK.
Therefore, you must book the invoice "gross", as you will pay it this way.
You can then consider/check whether you can reclaim the British VAT through a reverse charge procedure in the UK. If you initiate this, you can book the VAT as an "other receivable" (for balance sheet purposes) or as income in the year of actual reimbursement.
Best regards,
Tax advisor P. Färber
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