I have a sole-proprietorship registered in Germany and provide services to my customers. I am currently in negotiations with a UK client. Now that the UK left the European Union and that deals have been agreed upon between the two entities, should I charge the German VAT (19%) for my services and use an EU tax id? Or should I instead charge a UK VAT and use a UK id? Or something else?
Yes, you should, according to HMRC ("Should I be registered for VAT?")
9.1 NETP – definition A non-established taxable person (NETP) is any person who is not normally resident in the UK, does not have a UK establishment and, in the case of a company, is not incorporated in the UK.
9.2 UK establishment: definition A UK establishment exists if either the:
place where essential management decisions are made and the business’s central administration is carried out is in the UK business has a permanent physical presence with the human and technical resources to make or receive taxable supplies in the UK We would normally consider a company which is incorporated in the UK to have an establishment in the UK as long as it’s able to receive business supplies at its registered office.
9.3 When an NETP must register for VAT in the UK If you make any taxable supplies (see paragraph 2.3) in the UK, you must:
- register for VAT in the UK
- account for UK VAT to HMRC