UK Reverse Charge

[alexgandalf]

Hi,

I know the reverse charge mechanism is being used for supplies in EU member states in order to not have to register in every state to claim your VAT. My question is, is the reverse charge applicable in countries outside the EU? Can I use reverse charge if I am being supplied with services by a company that is designated outside Europe?

Thanks,

 

[Truemanbrown]

The answer is yes.

The reason is that not every business can deduct all the VAT charged to it such as banks, insurance companies and financial services businesses. If you didn't have the reverse charge it would be cheaper buying a service from outside the UK or EU rather than from within the UK or EU with VAT charged on it.