What if the client supplies services abroad only?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
If my client provides his service abroad, but still resides in this country and banks in this country, does he need to register for VAT?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What if the client supplies services abroad only?

    Presuming your clients supplies will be zero-rated (EC registered customers or non-EC exports) then they are obliged to register for VAT subject to the usual turnover rules.

    If they will only be making zero-rated supplies then they can ask HMRC to allow them not to register.

    This will avoid the administration but will also mean that they will not be able to reclaim VAT on any of their purchases.


  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What if the client supplies services abroad only?

    The service would not be zero rated if it was in this country. Basically they are a film crew, making films abroad for companies all over the world, but on a small scale. Their turnover last year was £52,000 and they are hoping to get more work this year. Any ideas?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What if the client supplies services abroad only?

    I see.

    Take a look at this thread. The situation can get complicated.


  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:What if the client supplies services abroad only?

    Yes, very complicated! Thanks anyway.

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