Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
The VAT Turnover Threshold is, as you are probably aware, set at 83K. This threshold is the aggregate of standard, reduced and zero rated supplies made. If the threshold is breached in any one year then registration is necessary. Once registered any input tax suffered by your business can be reclaimed quarterly.
Your supplies to a BVI Company will be exports, a zero rated supply. Although you do charge your customers VAT this is at zero percent assuming that you are registered for the tax.
I do hope that I have been able to shed some light on your situation for you.
Any earnings within the EU would be standard rated supplies as you surmise unless the reverse charge applies*. You would account for these in your quarterly return and reclaim any input tax suffered. I am slightly confused as to what you mean by 'do i also pay zero rate VAT on those earnings.'
Thank you for your support.
* The reverse charge operates for supplies to other countries within the EU where you have the VAT or equivalent number of your customer. Under the reverse charge you charge VAT at the standard rate, but immediately post it as an input thus effectively making it, as far as you are concerned, zero rated.
Where the reverse charge applies you have to make a periodic EU Sales List Return to HMRC.
The first part of your follow up you have it to a 'T'; to use an old Edwardian expression. You would charge VAT to the customer, but at zero percent so the full 100K wound enter your coffers.
For the second part the profit to the would not be affected. Let us assume that the 100K was a standard rated supply. You would bill 100K plus 20K VAT. Thus you would receive 120K in settlement, 20K of which would have to be rendered to the VATman. Simple, as the mercat in the Tv advert would say.
I am off to bed now as I am unwell. Any further follow up I will reply in the morning, but I think I have covered everything in our exchange.