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bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4970
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I am a self employed UK citizen working abroad full time and

Customer Question

I am a self employed UK citizen working abroad full time and therefore non resident for uk income tax. An EU client insists that I must include a VAT number on my invoices.
I am not VAT registered. I do not meet the turnover compulsory registration threshold but I could register voluntarily. If I was to become VAT registered would I still be able to be classified as UK non resident for income tax or would I become a company and be taxed on my world wide income ?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

You should tell your EU customer that you are not registered for VAT in the UK and therefore do not have a VAT Number. Remember that some EU countries do not have any VAT Threshold eg Germany where if you do one phennig's worth of business you must register for their equivalent of VAT.

HMRC may allow a registration, but probably not as you are non resident. If they do it will not open the door to UK taxation on the company's world wide income.

I do hope that you have found my reply of assistance.