[dingaling]

> I'm sorry but you might want to get a 2nd opinion B2B services in the UK are VAT taxable.

Only applicable if you as supplier are registered for VAT.

Many smaller businesses and sole-traders selling less than the relevant home-country thresholds are unaffected.

In the UK that is £82,000 per year.

Source: being a small UK business that decided against VAT registration for that reason

[dogma1138]

That's if they choose not to register for VAT you can register for a VAT number in the UK as self employed under any threshold. In many cases the savings from VAT returns might be sufficient to justify the cost of handling VAT on your end.

How ever non-UK member state suppliers complicate things, if you are VAT registered in Germany, you are treated as a VAT registered businesses/individual by the HMRC so in this case the reverse VAT charges need to happen (the company which received the service in the UK will clear the VAT on the invoice).

http://www.hmrc.gov.uk/manuals/vatpossmanual/vatposs14100.ht...

What i don't understand is why they've simplified things beyond reason for B2B but complicated things in B2C, heck what happens if you have a tax exempt business (UK example: self-employed people with small earnings exemption) and you cannot register for a VAT number or produce a VAT invoice and you have B2C transactions with other member states that now require you to charge VAT?

[hrbrtglm]

As far as I understand the issue, I think that's only true as domestic sales are concerned. Like you, UK to UK. But if you are from another european country, even under your own country thresholds, you have to apply UK sales tax if the UK customer is not VAT registered.