I have a new client who I am registering as a sole trader with a new business in the UK
He is a consultant who will offer his services almost exclusively outside the UK
He has done this business before from other countries so will expect turnover to be £100,000 plus per year
My question is regarding the VAT, am I correct to believe that this service received outside the UK is outside the scope of VAT despite the fact he is based here.
I would appreciate any help
Thanks
Valerie
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
In answer to your question it all depends on the place of supply.
You need to read this VAT notice (and the links applicable to your situation) and then ask follow up questions rather than us simply paraphrasing HMRC's wording on the site.
Don't worry, it's not a particularly long one and it's quite well written.
Kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks for the link which is very useful. I also rang HMRC and very surprisingly spoke to an extremely helpful and very knowledgeable man. It appears his business is outside the scope of VAT as the companies receiving the service are outside of the UK.
Thanks for your input
Valerie
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Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
If service he provided inside EC to a non-registered EC customer, he will have to register for VAT for that country and invoice the customer for that VAT.
Also type of service he provides can have an effect on rules for accounting treatment of VAT.
Can get complex, best to seek guidance from an expert in VAT law; well worth the fees in this scenario.
The service would be within the EU, mainly to France, Germany and Italy.
He is a consultant Engineer, providing the service to businesses
Does this still class as outside the scope of UK Vat
Thanks
Valerie
__________________
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
