VAT Information

VAT Information for all EU providers of international services

Where the Association has instructed a service provider on a Member’s behalf and has agreed to pay fees in the first instance, the provider should render its invoice in the name of the Member to whom the service has been supplied. If the provider knows the address of the Member then the original invoice should be sent direct to the Member concerned, with an email copy to the Managers. If the provider does not know the Member’s address then the invoice should be made out as follows:


 …………………………………….(Member’s Name)
c/o Steamship Mutual Underwriting Association Limited


and a copy should be e mailed to the Managers (see contact details on website if claim contact unknown http://www.steamshipmutual.com/contact-us/)

In either event the Association will aim to settle the invoice no later than 30 days after approval of the invoice.

Where VAT has been applied to the invoice, because the service provider and the Member both belong in the same EU country, the Association will pay the amount of the invoice net of VAT direct to the provider and the Member will be responsible for payment of the VAT element of the invoice to the provider. The Association will not accept responsibility for the payment of the VAT element of any invoice.

The Association attempts to collect VAT registration information from its Members, in order to assist them and service providers in establishing “business capacity”, and will provide such information to you where available. If the Association does not have the necessary information it will necessarily remain the obligation of the service provider to obtain it direct from the Member concerned. It has to be emphasised that it is essential that service fees payable and/or reimbursable by the Association must be correctly invoiced and the correct VAT treatment applied. If this is not done in the first instance, incorrect invoices will have to be returned to the provider concerned and correct invoices issued, which will inevitably result in delays in settling the fees. Your assistance in this respect will be greatly appreciated.

VAT Information for Members

The following sets out how EU service fees covered by the Association should be handled in order to ensure that VAT is only incurred where properly due and is recovered wherever possible before reimbursement is sought from the Association.

LOCATION OF SUPPLY OF SERVICES

Assuming that the supplier of the service in question is resident in the EU for VAT purposes, VAT treatment of the relevant fees will be dependent on where the services are being supplied.

If the recipient of the service belongs:

  1. in the same country as the provider of the service then the fees for such services will be subject to VAT at the applicable rate;
  2. in a different EU country from the provider of the service then the service will be outside the scope of VAT in the service provider’s country and no VAT should be included in the invoice, subject only to the recipient establishing that he received the services in “a business capacity”. However, the recipient of the service will have to account to his local VAT office under the relevant “reverse charge” provisions;
  3. outside the EU then the services are outside the scope of VAT and the service provider should not add VAT to his invoice.

REIMBURSEMENT/PAYMENT BY THE ASSOCIATION

  1. Where a Member seeks reimbursement of fees covered by the Association which the Member has paid and to which VAT has been added in accordance with (A) above the Association will, after the application of any relevant deductible, only reimburse the amount of the fee net of VAT, as the Member will be able to recover the amount of the VAT from his local VAT office;
  2. Where the Association has instructed the EU service provider on the Member’s behalf and has agreed to pay the fees in the first instance, the service provider will nevertheless be instructed to render his invoice to the Member but with a copy to the Managers. If the invoice attracts VAT under (A) above the Association will pay the invoice net of VAT, and the Member will be required to pay the amount of the VAT to the service provider direct and then claim it back from the Member’s local VAT office. If the services concerned are out of scope under (B) above, because the Member belongs in a different EU country from the service provider, and therefore do not attract VAT, then the Association will pay the whole of the invoice concerned on the basis of the copy sent to the Association and the Member, subject to any applicable deductible, will not have to pay anything. However, the Member will have to include the invoice in his return to his local VAT office in order to comply with the “reverse charge” provisions.