@justbookies 147993 wrote:
I don’t understand this sentence at all. You must have heard him wrong. If two companies are VAT registered (i.e: you and the company you are dealing with) then you obviously do charge that company VAT when you invoice it. It pays the VAT to you and you pay it on to the revenue.
I beleive it is to do with “reverse charge mechanism“
my accountant:
“- did you mean one company is UK company, another company is EC company?
– I am referring to 2 companies that are trading with each other that
are outside the UK but within the EC.
– Then if both companies are VAT registered you can invoice without
VAT if you quote the other companies VAT number on your invoice.
Some companies will not pay VAT and ask you to re-invoice without
VAT as even if they can claim it back it causes a cashflow issue.
Remember this is for trade outside the UK and within the EC only.”