VAT
When DoubleAgent explains your GoCardless payments, it needs to know whether VAT is involved. There are three options:
- Only when the contact (i.e the customer in GoCardless) is based in the UK
- Always
- Never
You can tell DoubleAgent which to use on your integration's settings page.
VAT is 20%.
Reverse charge for EC customers
Reverse charge is only ever set if you answer Yes to "Do you need to use VAT rates other than standard UK ones?" (on your FreeAgent Settings → VAT Registration page).
Assuming you answered yes, every invoice for an EC customer will have a reverse charge VAT status and each invoice item will have 0% sales tax.
| “Charge VAT?” setting | Customer's location | VAT |
|---|---|---|
| Only when the contact is based in the UK | UK | 20% |
| Only when the contact is based in the UK | EU | 0% (reverse charge) |
| Only when the contact is based in the UK | Not UK and not EU | Out of scope |
| Always | Not EU | 20% |
| Always | EU | 0% (reverse charge) |
| Never | UK | Exempt |
| Never | EU | 0% (reverse charge) |
| Never | Not UK and not EU | Out of scope |