Many UK architect firms are in demand throughout the EU, but many are not aware of how engaging in work overseas will have implications for their VAT obligations.
Rob Janering, Associate Director at Accordance, has written an article featured in Industry Today, about what VAT considerations must be taken into account when taking on a project in another country, as there may be a need for that architect firm to become VAT registered immediately.
This is because in regards to services (and architect firms will be on the whole providing services rather than goods to their clients) that are connected with immovable property, VAT is due in the place where that property is located, regardless of whether the supply is made on a B2B or B2C basis.
Architect firms must therefore spend time determining the VAT implications around land-related supplies, and be able to determine whether they apply to each job on a case by case basis. Currently the rules vary around the EU as to what supplies are considered to be in respect of immovable property, but EU legislation coming into effect from January 2017 will be providing uniform regulations and guidance.
Read the full article here