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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13919
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I need advice on a few issues

Resolved Question:

I need advice on a few issues
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi Thanks for your question and aaskig for me How can I help? Thanks Sam
Customer: replied 2 years ago.
Hello Sam,I got my wires crossed a bit, thought I only sent in one request, and not the one above. My real question is:I am a professional geologist, based in the UK, with potential clients (I am just starting out) in Italy and the USA. Do I have to pay VAT on charges for my services to Italy clients? How about for USA clients?
Customer: replied 2 years ago.
While we are at it, what are the practical/legal conditions under which my consulting would be conducted "entirely overseas", (and not immediately taxed if left overseas, as I understand it), as I am a non-dom remittance-basis taxpayer?
Expert:  Sam replied 2 years ago.
Hi Thanks for your question Where do you perform your services? In the UK or the country in question. And clarify that you are registered for VAT And as for your overseas question = hat would need to be listed as a new question as per Just Andwerr poicy - or I can send an additional services request for additional Q & A time if you would prefer Thanks Sam
Customer: replied 2 years ago.
I would like to perform the services in the UK, though I am free to go to Italy or the United States. I am not registered for VAT, as I have not worked or sought work yet: I would register before beginning work, but I am just researching now.We can skip the overseas question for now. Thanks.
Expert:  Sam replied 2 years ago.
Hi Thanks for your response Then you will charge VAT as follows where you perform the services out of the UKIf to an EU country (so Italy for example) then as you are in the UK, you don’t charge UK VAT. However, for some supplies, you may need to register and account for VAT in the country of supply. You will need to check with the tax authority in that country to find out how to treat the services you are supplying If supplying to a NON EU country you don’t have to charge EU VAT or include the sale on your VAT Return.I have added a link to the VAT guide Notice 725 for your information https://www.gov.uk/government/publications/vat-notice-725-the-single-market/vat-notice-726-the-single-market#vat-in-the-ec But from a UK point of view - if you place of supply is the UK - so you remain in the UK to provide the services, then usually UK VAT is due. Thanks Sam
Customer: replied 2 years ago.
Thanks Sam.Just to clarify the meaning of "supplies", "country of supply", and "place of supply" in your answer. Are "supplies" the services I provide, and does "place of supply" mean where I do the actual work?What if I split work between two countries, for instance half in UK and half elsewhere?Those are the last clarifications. Thanks again. Jim
Expert:  Sam replied 2 years ago.
Hi Jim Yes your service is your supply - if you split the work between the two countries then you will theoretically also have to split the consideration of what element of the fee charged relates to the work undertaken, However this is never a particular practical way to proceed. BUT HMRC advise f you have a business establishment in the UK and establishments in other countries, you need to look at what each establishment does in terms of supplying services. If, for example, your company has its head office in the UK, but has a French subsidiary that supplies services to local businesses, then the French company belongs in France for VAT purposes. This is the case even if your head office belongs in the UK for supplies that it makes in the UK.In this instance this is what you then would need to consider - creating an establishment abroad - and also considering the tax implication of said income and that countries tax requirements of you - so it might be easier to try and make it either/or depending on where the bulk of work has been carried out from Do let me know if I can assist any further, but it would be appreciated if you would rate/accept the answer, based on how you feel I have performed in assisting you Thanks Sam ThanksSam
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Customer: replied 2 years ago.
Thank you Sam. 5 Stars.