VAT registration - 90% of turnover non EU
Discussion
essayer said:
If a business mainly sells to non-EU clients and so be unlikely to ever reach the VAT registration threshold, do HMRC allow you to register for VAT voluntarily?
Obviously the business pays a reasonable amount of UK VAT each month, so HMRC would be sending a refund every quarter..
Simple answer. Yes you can register for VAT. If you are getting regular refunds, don't be surprised to get the odd visit from HRMC though.Obviously the business pays a reasonable amount of UK VAT each month, so HMRC would be sending a refund every quarter..
essayer said:
Yes I had thought that would be the case 
But the savings should pay for the bookkeeper to sit there each time!
You can only claim the relevant % refund.But the savings should pay for the bookkeeper to sit there each time!
In simple terms if 10% of your turnover attracts VAT then you can reclaim 10% of the VAT.
As ever it will be more complicated than that - but you won't be able to get a refund of ALL the VAT you pay.
Surely he just reclaims the VAT on his purchases?essayer said:
If a business mainly sells to non-EU clients and so be unlikely to ever reach the VAT registration threshold, ......
OP, are you saying that your TOTAL turnover both within and outside of the EU is less than the threshold figure?If so, you can do as you please - register or not, but I infer from your question that you are not (yet) registered because your EU sales alone are well below the VAT threshold.
I assume that the place of supply is the UK. Therefore your goods sold outside of the EU are taxable exports at zero-rate, but are still counted as a taxable supply, hence they will therefore count towards the VAT threshold.
Opens up the can of worms about place of supply and the difference between goods and services ....... good job I'm not an accountant 
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