VATREC5020 - VAT invoice: VAT Invoices for Northern Ireland intra-EC supplies
If a registered person is based in Northern Ireland, the obligation to provide a VAT invoice for intra-EC supplies is covered by VAT Regulations 1995, regulation 13(1)(b). The details which must be shown on the invoice are listed in VAT Regulations 1995, regulation 14(2):
14 – (2) Save as the Commissioners may otherwise allow, where a registered person who is identified for the purposes of VAT in Northern Ireland provides a person in another member State with a VAT invoice or any document that refers to a VAT invoice and is intended to amend it, he must ensure that it states thereon the following particulars—
(a) the information specified in sub-paragraphs (a) to (e), (g), (j), (m), (n) and (o) of paragraph (1) above,
(b) the letters “XI” as a prefix to his registration number,
(c) the registration number, if any, of the recipient of the supply of goods and which registration number, if any, shall contain the alphabetical code of the relevant territory in which that recipient is registered,
(d) the gross amount payable, excluding VAT,
(e) where the supply is of a new means of transport (as defined in paragraph 83 of Schedule 9ZA to the Act) a description sufficient to identify it as such,
(f) for each description, the quantity of the goods and where a positive rate of VAT is chargeable, the rate of VAT and the amount payable, excluding VAT, expressed in sterling,
(g) where the supply of goods is a taxable supply, the information as specified in sub-paragraph (l) of paragraph (1) above, and
(h) where the supply is an exempt or zero-rated supply, a relevant reference, or any indication that the supply is exempt or zero-rated as appropriate.
Reference to the fact that the invoice is for an intra-EC Exempt supply
For the purposes of regulation 14(2)(h), an exempt supply is a supply that, if made in the UK, would be exempt under Schedule 9 of the Value Added Tax Act 1994.
Where an invoice is required it will need to include a reference to the nature of the treatment. This means the invoice should include a reference to either the relevant EC or UK legislation, or include any other indication that the supply is exempt.
Under the regulations the requirement to issue an invoice for exempt supplies only arises when the supply is:
· business to business
· across an EC border, and
· an invoice is required by the EC member State of receipt
Because custom and practice varies widely, even in EC member States whose legislation ostensibly requires an invoice, our advice to UK businesses is that they should always be guided by their customer about the need for an invoice.
The way in which the intra-EC exempt treatment is referenced on an invoice is a matter for business and not HMRC. Our aim is to allow affected businesses the widest possible discretion.
Examples of acceptable wording under the ‘any other indication’ option might include:
Exempt supplies
· Exempt supply
· Exempt supply for VAT purposes
· This supply is exempt from VAT
Reference to the fact that the invoice is for an intra-EC Zero Rated Supply
For intra-EC zero rated supplies of goods (dispatches) traders will need to include a reference to the nature of the treatment which accords with the Principal VAT Directive. This means the invoice should include a reference to either the relevant EC or UK legislation, or include any other indication that the supply is a zero rated intra-EC supply.
The way in which the zero rate treatment is indicated on an invoice is a matter for business and not for HMRC. Our aim is to allow businesses the widest possible discretion, and it may be that the format and information already used on invoices is sufficient to satisfy the regulation.
Examples of acceptable wording under the ‘any other indication’ option might include:
· Zero rated intra-EC supply
· This is an intra-Community supply
Intra-Community supply subject to VAT in the country of acquisition