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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> uk resident business pay vat on usa earnings
Post Info TOPIC: uk resident business pay vat on usa earnings
yanton


Newbie

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uk resident business pay vat on usa earnings
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my ltd company registered in the uk, and living / working in the uk, earns 100% of its earnings from only usa sources.

my only expenses are usa ones - for web hosting.

the work is affiliate income from my own websites.

should i pay any vat at all?

and bearing this in mind, should i anyway register for flat rate, or standard vat?

a newbie asks for your help on this one.

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BackOfficeGroup


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As the supply is outside the EC, I would say that VAT is not chargeable as it is outside the scope - this is under the electronically supplied services.

If within the EC, then so long as the advertising is for a business, then it will outside the scope nad the customer company will charge using reverse charge. However if non business customer, then VAT will need to be charged.

Hope that helps.

P

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yanton


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no, nothing comes from ec countries, only the usa

the earnings are from one company in the usa

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Alfred


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Hi

My advice is that as your income is from the USA only and your business is UK based you would not be liable to pay VAT as you would not charge VAT for goods/services sold to the USA.

Alfred

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Alfred

www.Balcom.co.uk
info@balcom.co.uk
@balcomservices
yanton


Newbie

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Yes, a good point, there is no vat i can claim back, as my suppliers are all in usa.

So i should go for the standard (not the flat rate) scheme, even though there will be nothing to pay, as it will all be effectivley zero rated.

I have to register anyway, as i have reached about 75k income part way through the year.

My accountants are looking into it, i just wanted to be better informed.

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BackOfficeGroup


Guru

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Yes, as you have reached the threshold, you will need to be registered. Just go for the standard, as you will be able to reclaim your costs in the uk, ie ISP, Tel etc

P

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UK169


Newbie

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You do not need to register VAT in the UK as your income is not VAT taxable income which does not apply for 'taxable turnover threshold'.



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