VAT Registration Question
Discussion
Before I call the VAT office, I'll ask here.
I have a choice of putting my US sales through a US company or a UK company. The work for the sale can either be done in the US or UK, doesn't really matter. Even if the sale passed through the UK company, the work can be done in the US.
If I do the sales in the UK through the existing UK company, then the turnover will push the company into VAT thresholds, something it doesn't do now, hence the company legally remaining non vatable. However, as the US sales will be non vatable sales, does this turnover actually count towards the threshold?
As a guess, it probably does, so I'm really asking the question to see if there is an unknown bit qualification that I havent seen.
I have a choice of putting my US sales through a US company or a UK company. The work for the sale can either be done in the US or UK, doesn't really matter. Even if the sale passed through the UK company, the work can be done in the US.
If I do the sales in the UK through the existing UK company, then the turnover will push the company into VAT thresholds, something it doesn't do now, hence the company legally remaining non vatable. However, as the US sales will be non vatable sales, does this turnover actually count towards the threshold?
As a guess, it probably does, so I'm really asking the question to see if there is an unknown bit qualification that I havent seen.
The normal rule is that GOODS supplied to an overseas customer are Zero Rated for VAT purposes.
The normal rule for SERVICES is that the VAT applicable is based on the PLACE OF SUPPLY of the service i.e. where YOU were located at the time you carried out the service for your overseas customer. Zero rating can be applied if YOU were actually overseas when you performed the service. If you were based in the UK when the service was supplied, you will need to Standard Rate the supply.
If the customer is in the EU, then you must quote your CUSTOMER'S VAT registration number on YOUR invoice to them. This is not required when the customer is based outside the EU.
Normally, Zero Rated sales are INCLUDED when calculating the total sales for the year for VAT registration threshold purposes. However, if your total Standard Rated sales are below the threshold you are not obliged to register.
Don't forget, that by registering for VAT, you will be able to claim back UK Input VAT on your costs - even on those costs that generated your Zero Rated sales.
The normal rule for SERVICES is that the VAT applicable is based on the PLACE OF SUPPLY of the service i.e. where YOU were located at the time you carried out the service for your overseas customer. Zero rating can be applied if YOU were actually overseas when you performed the service. If you were based in the UK when the service was supplied, you will need to Standard Rate the supply.
If the customer is in the EU, then you must quote your CUSTOMER'S VAT registration number on YOUR invoice to them. This is not required when the customer is based outside the EU.
Normally, Zero Rated sales are INCLUDED when calculating the total sales for the year for VAT registration threshold purposes. However, if your total Standard Rated sales are below the threshold you are not obliged to register.
Don't forget, that by registering for VAT, you will be able to claim back UK Input VAT on your costs - even on those costs that generated your Zero Rated sales.
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