VAT query re sales outside of EU

[MrJuice]

My turnover to 01/04/19 is above the 85k mtd threshold but all sales were made outside the EU. My accountant says I therefore do not need to register for mtd in view of all sales being made outside the EU

I trust him

But just double-checking

What does the PH massive say?

[psi310398]

On those facts, I think he's right.

[Eric Mc]

The Turnover Threshold of £85,000 relates to "VAT able sales". If all of your sales are to customers outside the EU, they are Exempt Sales and therefore not VATable - so don't count towards the £85,000.

HOWEVER, you can still register voluntarilly if you want to.

[MrJuice]

The plot thickens

Accountant spoke to HMRC today who said that I do indeed have to register for MTD because the goods were bought in the UK and then exported. The fact the goods were in the UK means I have to register. If, for example. I bought goods in China and sold them in India, my UK company would not have to register for MTD (subject to remaining under the 85k threshold otherwise).

[MrJuice]

Eric Mc said:

The Turnover Threshold of £85,000 relates to "VAT able sales". If all of your sales are to customers outside the EU, they are Exempt Sales and therefore not VATable - so don't count towards the £85,000.

HOWEVER, you can still register voluntarilly if you want to.

Are they exempt of zero rated?

[Eric Mc]

If all your or the vast bulk of your sales are Zero Rated AND they exceed £85,000, you can, by concession, opt NOT to register for VAT.

This may not be a good idea as businesses with high volumes of Zero Rated sales are usually in a position where they receive regular VAT refunds from HMRC.

[psi310398]

Eric Mc said:

If all your or the vast bulk of your sales are Zero Rated AND they exceed £85,000, you can, by concession, opt NOT to register for VAT.

This may not be a good idea as businesses with high volumes of Zero Rated sales are usually in a position where they receive regular VAT refunds from HMRC.

among other things, I am a director of a book publishing business which has a domestic market and which does a lot of export outside the EU, mainly in the English speaking world, selling rights elsewhere.

Books are zero rated here in the UK, although eBooks are vatable. We get a refund from HMRC to cover the difference between the VAT we've paid on most goods and services that we buy in and the almost complete absence of VAT that we are required to pay on this aspect of our business, either because of zero rating or non-applicability.

If you are zero rated as opposed to VAT simply not applying to your sales, I'd agree with Eric Mc - on the face of it you might be missing out on a fair amount of free cash.

[MrJuice]

I am registered for VAT

Just was not sure if I needed to register for MTD VAT but it turns out I do need to because zero rated sales for goods going from the UK to somewhere abroad count towards turnover.

[Eric Mc]

HMRC's definitions of what counts as relevant turnover varies all over the place depending on what regulation you are trying to adhere to.