Maybe I'm over-thinking this one. But if a uk based IT company performs Search Engine Optimisation work for a US based website - is Vat chargeable on the service? Where is the service classed as taking place?
Does it have any bearing where the web-site is hosted e.g. Company employee is in England but log's into a website in the US?
Tia...
__________________
Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
The VAT 'Place of Supply' rules govern where a supply is deemed to take place, and therefore whether UK VAT, or any other VAT, is applicable.
On the basis that the customer is in business in the US, the General Rule applies, which means that there is no UK VAT on the transaction.The key is where the customer is established for business purposes.
There remains a question as to when he would be required to be registered in the US. You might have to find a similar US-based forum to get that answer!
Are you familiar with Affiliates programmes and companies like Commission Junction? I need to do a bit of research on this, another client earns commission income from them but has been treating it as non-vatable because they are based in Ireland?
__________________
Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
No, the location of the recipient is where the customer is based.
Where there are multiple locations, then a further question can arise as to which location is relevant to the supply in question. Notice 741, para 3.6 tries to explain this. I would say that simply having or using a remote server would not create an additional 'business establishment.' So the Place of Supply is unchanged.
