Hi, sorry but I don't get this at all.
We have a Scottish registered limited company and are therefore liable for UK VAT. We will be selling online services to the world which in turn causes VAT issues.
When I contacted HMRC they sent me to some ambiguous list showing the member states in the EU, and from this I gathered that I had to contact each member state and apply (?) for VAT registration in that country (all 60 odd of them and each charging a different rate possibly). HMRC themselves did not help me at all. So I am at a loss. I have e-mailed HMRC regarding the e-services but have not had a reply after 3 days so far.
In a nutshell, how do I invoice customers online in say Germany (EU) or USA (Non EU)? If they are a business in the EU do I charge UK VAT and therefore show it on the invoice to them or not charge/show VAT at all? If they are not a business, i.e. an individual do I charge UK VAT or no VAT at all? (Also, am I then to include on my website a question asking if they are a business or not?)
If they are outside of the EU, i.e. USA, India, China, etc do I charge UK VAT or not at all?
Do I have to sign up to all the individual member states and if so how, and how do I then pay the VAT to each member state (if this is what is required and I don't know whether I do or not) or shall I just shoot myself and have done with it? Sorry this is such a headache and HMRC are worst than useless.
Right thanks, XXXXX XXXXX do not charge VAT to outsiders of the EU (i.e. USA).
I have now re-checked the HMRC website and found that yes I zero rate businesses inside the EU, but have to get their Vat registration number and check it against the Europa website for validity.
For individuals and non businesses within the EU, I have to charge UK Vat rate until I reach/exceed the threshold applicable in that country, eg 35,000euros in Belgium, and then I would have to register for VAT in Belgium and charge their VAT rate on my goods/services after this amount is exceeded.
Q) If I could just ask reference the supply of goods/services; our business will supply online live training to individuals/companies on a regular basis, as well as pdf downloads and podcasts. The supply obviously originates (e.g. via Skype) in the UK but is listened to/watched in the foreign country, how does this apply to the HMRC rules? Does this establish that the supply takes place elsewhere to the UK? What are the consequences either way?
Thanks for this as I had not heard of these changes ahead.
So for the supply change will this mean that I will not charge vat to an individual once this change is implemented (or zero rate it)?
And, I assume that the thresholds will still be the same (35000.00 or 100000.00 euros) so the second change will not affect anyone making sales under the amounts relevant to the country, again when the change is implemented?
Thank you Robin, I will leave you in peace now. I think I have a grasp on this but I fear I may have to come back in the future for additional help.
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