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My situation

  • I'm a UK based freelancer who provides website development services.
  • I'm a limited company and VAT registered.
  • I provide my services on an online platform based in Denmark. This platform is VAT registered.
  • Customers from all over the world post projects on the platform.
  • Customers are charged by the platform.
  • I'm paid by the platform via bank (wire) transfer.

My question

Before leaving the EU, any payments received from Denmark were subject to a VAT reverse charge.

Now that the UK has left the EU, where do I stand with VAT? Should I be adding VAT to payments that I receive from Denmark?

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You do not matter. Reverse charge STILL applies - basically: You provide your services without deducting Danish VAT (because you would calculate VAT on PLACE OF CONSUMPTION, unless you are REALLY small and fall under the limit) and the VAT registered client handles his VAT locally on his side. Interesting enough NOTHING has changed because you always WOULD have collected the DANISH VAT.

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  • HMRC has confirmed this, thank you for the answer. I have been advised that guidance is changing frequently, so this is a good thing to keep an eye on. – Sam Jan 12 at 14:31

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