do I need to charge vat if...
Discussion
) is based in Japan. We are doing some website work for him but he is paying in pounds sterling as he is from the UK and he has a sterling account. Just wondering what the taxman is likely to say/think... Eric Mc said:
Where are YOU supplying the service?
in/from the UK, but the website wont exist until we upload it, which will be to his eastern server, out in ye olde far east, ie no service will be rendered in Europe. The service is for (and will be provided in/for) someone in the east. Or am I confusing matters?Supply of electronic type services creates problems for VAT as the place of supply of the service is not always clear.
The normal rule for supply of services is that VAT is charged by the supplier based on where the supplier is actually supplying the service. Therefore, even if your customer is overseas, you might be carrying out the service for them here in the UK.
If that is the case, then you charge 17.5% VAT if they are an EU customer and Zero if they are non-EU.
If you are supplying the service in THEIR country, then you can charge Zero % VAT if your customer is in the EU AND they are VAT registered in THEIR country. If they are NOT VAT registered, you charge VAT at 17.5%.
If they are outside the EU, you charge at Zero %.
The normal rule for supply of services is that VAT is charged by the supplier based on where the supplier is actually supplying the service. Therefore, even if your customer is overseas, you might be carrying out the service for them here in the UK.
If that is the case, then you charge 17.5% VAT if they are an EU customer and Zero if they are non-EU.
If you are supplying the service in THEIR country, then you can charge Zero % VAT if your customer is in the EU AND they are VAT registered in THEIR country. If they are NOT VAT registered, you charge VAT at 17.5%.
If they are outside the EU, you charge at Zero %.
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