How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4075
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

As part of a social network I run, clients can enhance their

Customer Question

As part of a social network I run, clients can enhance their profile for a fee. My partner insists these are liable to VAT, I am not so sure. Who is right ?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
Your partner is right, but soft. Unless your turnover exceeds or is likely to exceed 81K per annum your business would be below the VAT threshold rendering VAT and accounting therefor unnecessary.
However, if your clients are outside the EU (remember the Isle of Man and the Channel Islands are not part of the EU) then those supplies you make are exports and zero rated for VAT so if these are a substantial part of your business then you might obtain a cash flow advantage from the reclaim of input tax on supplies of goods and services you buy in to your operations; just a thought. On the other hand, you would have to charge VAT to UK clients and that could render activities no longer competitive.
I do hope I have put your mind at rest over this matter.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.