EU customer, goods supplied from UK to UK as goods are for vehicle in UK

Question

Hi, new here so apologies if this is wrong place to ask. 
 We have a customer who resides in Netherlands. His vehicle is being stored with us in the UK. All parts (goods) and labour (services) are delivered/ carried out in the UK. In Sage Business Cloud Accounting, his billing address is set to Netherlands, so Sage automatically zeroes the VAT. However, if the goods and services all remain within the UK, surely we have to charge UK VAT on his invoices? 
 
 My questions are, is the above correct? And how do I keep his billing address in Netherlands but still apply VAT to his invoices? 
 
 Thanks in advance for advice regarding above.

Andy Rickeard · Answer

Hi Sam,

Thanks for using Community Hub.

I'd recommend contacting HMRC to confirm if and where VAT would apply, they will be able to advise based on the specific circumstances of your example. Once they've advised what is due where, then we can advise how you can achieve that in the software.

Thanks,

Andy
Sage UKI

Andy Rickeard · Answer

Hi Sam, 
 Thanks for coming back. 
 To be able to do this in Sage Accounting, you'll need to create a new contact for the customer with Country: UK. The rest of the address can be free text to show the correct billing address. The key requirement is that the country is set to UK to allow you to generate an invoice with UK VAT as required by HMRC. 
 If this helps, please click Verify Answer . 
 Regards 
 Andy, 
 Sage UKI

Sage Accounting UKI

EU customer, goods supplied from UK to UK as goods are for vehicle in UK

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