My business uses the services of an IT consultant based in Canada but his business has a UK VAT registration number – so he charges us 20% UK VAT on his services (supported by an invoice) and we claim input tax on these costs. He says that the UK registration is necessary because he buys and sells some computers in the UK.
However our external accountants have told us that he should not have charged us UK VAT because he is an overseas trader and we should deal with the VAT instead by doing the reverse charge on our own returns.
The accountants have advised us to make a VAT652 disclosure to HMRC for the past four years to repay input tax of £60 000 we have overclaimed and to seek a VAT credit from the consultant. Is this advice correct? The accountant mentioned...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.