by Dotform » 17 Nov 2009, 17:00
Hello John-London,
As far as the reform of the place of taxation of the supply of services as from 1st January 2010 is concerned, various changes are definately going to take place.
Let us take the case of your company as an example;
If we assume that the services that your company normally purchase in France from French suppliers fall under the general regime "Article 44 of the European directive" (not forgetting that there are some exceptions e.g. passenger transport services, Rentals of means of transport......etc), here below are the changes that will take place;
1) You will no longer provide your company's French VAT number (FRxx xxx xxx xxx) to your French suppliers but that one of UK (GB XXXXXXXXX) since that is where your company is established.
2) Your French Supplier will be invoicing your company exclusive of French VAT under the "article 44: European directive 2008/8/CE"
3) Your company will have to self-assess the corresponding VAT in the UK's VAT return.
4) And your French suppliers will be bound to file a summary statement of all the services rendered - "The European Declaration of Services (D.E.S in French)."
NB. Owing to the fact that this is a general answer, I highly recommend that you provide your different purchase invoices to your tax agent / advisor so as to have a thorough analyse. All in all feel free to get back to me if at all you may need further information.
Best regards,
Dotform.
