charging vat on company services

Do we charge VAT on services?

We are often asked about charging VAT on our services. The majority of services that we provide are liable to VAT at the current rate. We will provide you with a detailed invoice that includes the VAT breakdown for your accounting records.

Services exempt from VAT.

Some of our services include an element that may be exempt from VAT and where possible we will pass on the exempt charge under HMRC guidelines. For example, our company formation packages include the fee to Companies House. We do not charge VAT on this element of the fee. This will be clearly detailed on your invoice.

Otherwise, wherever applicable, VAT is charged on the supply of goods and services to any individual or business placing an order.

vat on services
vat to eu customers

Customers in Europe with an EU VAT number!

There are occasions when we can omit VAT from a service charge. If a company that we are providing a service to is based within the EU and has an EU recognised VAT number we can remove the VAT in some cases.

When a customer is registered within the EU for VAT it is the customer’s responsibility to provide this information to us before a service is purchased. We will require the company name, country of registration and relevant VAT number. This will allow us to verify the number and adjust our pricing accordingly. It is standard practice to request written confirmation of the VAT number which should be on official tax authority stationery detailing the company name, address and recorded number. The company placing the order must hold the VAT number and be the beneficiary of the goods or services we are providing.

If you have purchased a service online without allowing us to check your details in advance we cannot simply refund the VAT element as the invoice raised was correct under the circumstances at the time of ordering. Adjusting invoices and making refund payments incurs administration costs that we cannot recover so we do not refund vat at a later date. You must advise us that the company ordering holds an EU VAT number before you order and check the price we are quoting excludes VAT before making payment.

If you would like us to verify your VAT number for future purchases please forward the required information in advance of payment as follows:

EU Company Name
Full Address and Country of Registration
EU VAT Number
A scanned copy of a tax document clearly showing your company details

Please note that having an EU VAT number does not automatically entitle you to have the VAT element of our charges removed. There are some services that we supply to UK companies that may be paid for by an EU registered customers that may still be liable to VAT. The decision on how we charge VAT ultimately rests with our company.

What if your UK business is not registered for VAT?

We are occasionally asked if we can remove VAT because the customer is not VAT registered themselves. Unfortunately we cannot remove VAT in these circumstances.

We understand that all forms of taxation add to the cost of running a business, but we are legally required to comply with all UK legislation.