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11 August 2015
Is VAT chargeable on bookkeeping services to a foreign charity?
My firm provides a bookkeeping service to an American charity. We post all of the sales and purchases invoices on a Sage software package and also reconcile and post the bank statements.
My first thought was that the work would not be subject to VAT because the charity (which is a religious body and has no business income) is based outside the EU. However a colleague recalls seeing somewhere that HMRC do not consider bookkeeping work to be the same as accountancy or tax work because it is not as skilled. On this basis my colleague thinks that we should charge 20% VAT on our services thereby applying the general business to customer (B2C) rule.
I would be interested to hear from readers on this point. As a suggestion I did wonder whether...
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