Forum Moderators: buckworks
He says that because he is in Cyprus (and I'm in the UK) that he is VAT exempt and thus would like 17.5% discount.
Hmm, I don't know if that is true or not but surely the VAT is payable because the purchase is in the UK?
If the guy is VAT exempt then isn't the correct procedure for me to charge VAT and him to reclaim it from his local tax authorities?
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(*The European Commission has advised in December 2003 that the 6th VAT Directive (Directive 77/388/EEC of 17 May 1977) will not apply in those areas of Cyprus in which the Government of the Republic of Cyprus does not exercise effective control. As the situation stands at present, goods to those destinations will continue to be eligible for zero-rating.)
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But isn't the treatment of internet purchased different? Wasn't there a new law passed last year which imposed VAT regardless of the buyers location? i.e. local tax is charged even if the buyer is not a member state etc.
He's then responsible for accounting for the VAT on his VAT return.
You have to show the amount ex vat on your 'sales to EC states' form which you can get from the HMCE.
If there's any doubt the customer is VAT registered we always ask for a copy of their certificate.
I'm not exporting any goods as such: it's a subscription to a website which is being paid for.
Surely the procedure is for the Customer to pay the UK VAT, me to issue a VAT receipt and him to reclaim it back in his country?
But for 'real' items we work on the final delivery address, i.e. delivered to an address:
In UK - goods + VAT
In EC - goods (customer responsible for VAT)
Outside EC - no VAT applicable
Yes this is correct, as Cyprus is still not in the EC.
