LL have two basic options in processing VAT for EU
A) Register for the scheme and charge VAT to customers at the rate appropriate in for the EU country in which the customer resides.
B) Establish a branch or subsidiary in a EU state 'from which to supply their online services' and charge VAT to EU customers at the rate applicable in that EU state - and not at the rate applicable in the customer state.
(A) has subflavours, but the effect on VAT rates charged is the same
(B) works as for an EU-established business.
When I checked MY Account, the VAT-inclusive tier amount indicated a VAT rate of 17.5%. This is the UK VAT rate, and not the 21% rate applicable in my State. LL already had true details of my location.
This implies that either
1) LL are using option (B) above, or
2) LL are using option (A) above and screwed up the calculation for my VAT-inclusive tier.
SO: The question is this:
What implied rate of VAT are other non-UK people *actually* seeing in their "My Account"?
-- Their national rate (A) or the UK rate 17.5% (B)?
As an aside:
If LL are using option (B) and the place of supply for VAT purposes is the UK, then it should imply that UK businesses should be charged VAT regardless of being VAT-registered. They would reclaim VAT under normal procedures.
I suggest that any discussion of this UK-specific aspect belongs in its own thread.
