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, Accountant
Category: Tax
Satisfied Customers: 4944
Type Your Tax Question Here...
bigduckontax is online now

Client wants to use a UK company through which he will look

This answer was rated:

client wants to use a UK company through which he will look after a European sales force for a U S company which he will charge for the service: are these services outside the scope of UK VAT &, therefore, will the co. be able to recover any input tax?
Hello, I am Keith, one of the experts on Just Answer and pleased to be able to help you with your question. If the turnover on the UK company approaches or exceeds 82K in any one year then it must register and account for VAT. In my opinion this should be done as soon as possible irrespective of the turnover to enable input tax to be reclaimed. The supplies made to the US company are zero rated supplies (ie they are subject to VAT, but at a rate of 0%). I do hope that my reply has been of assistance and shown your client the way forward. There will be no problem registering a sub 82K turnover business if it makes zero rated supplies.
bigduckontax and other Tax Specialists are ready to help you
Thank you for your excellent support.