OK, this is a good one, and a bit too close to home, as it relates to my hubby!
He is in the process of accepting a role through a Swiss recruitment agency, working on a project for a global IT company. The end client is a UK Bank, and that is where he will be based, and who will benefit from his services. (With me so far....?!)
So, this Swiss agency have sent the contract to his Ltd company, and said to bill them with no VAT....?! This sent alarm bills ringing with me, and so I spoke with the VAT Helpline, who in their usual, non-committal way gave no real guidance, but directed me to VAT Notice 741A point 4 ' Establishment most closely concerned with the supply' to make my own decision. Reading that, it would appear that VAT should be added to his bill, as it is the UK arm of the global IT company that the agency are serving in this instance, and a UK Bank that are benefiting from his services.
If you have managed to keep up with this tangled web, then any thoughts on this would be much appreciated.......!!!
Is the company's customer the UK branch of the bank? Or is it the Swiss recruitment company? You should have clear correspondence for this.
If, as you suggest, the company is the UK branch, then UK VAT must apply. I would advise you letting them know as early as possible, as they are unlikely to be able to recover the VAT and, if they have an issue, you need them to raise it well before they delay the first invoice payment!
