Reverse Charge/VAT

Jan 31, 2007 1 Replies

Hi,



I am a small computer related U.S. based business that might have a potential client in the UK. The issue of VAT and Reverse Charge has come up and I'm not sure what is required on my behalf. I know the potential client is responsible for the VAT no matter what.



The IRS here seems to have little information about this and the information they have is more geared towards if one travels to Europe and buys items and the like.



It seems to me that the reverse charge is used when a EU country does business with a non-EU country, so the non-EU country does not get involved with the VAT. Is that correct?



As a business, is there anything that I have to do in regards to this? Also, the work is web-design related which I'm wondering is even a VAT-taxed item?



Thanks for any help!


Web design services are treated as engineering consultancy services and if received from outside the UK would accordingly be subject to the reverse-charge mechanism in the UK.

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