Triangular VAT

We have recently taken over a new client which is based in the UK and provides workers to farmers in various European Union countries. Most of its contracts are agreed through agents based in Poland.

For example our client gets a contract to supply workers to farmers in France to harvest grapes.

Our client recruits workers in Poland (for which they are charged by various Polish recruitment agents) and sends them to France. This is a one-off freelance engagement between our client and the workers. Our client invoices the French farmers for its services and does not charge VAT.

It includes the farmer’s VAT number on each invoice and refers to the reverse charge rules.

We are happy with the above but the amounts involved are substantial. In peak season our client sends hundreds of workers a month to France Spain Italy etc.

The...