VAT on digital services from abroad

[Contreras]

Hi,

In VAT parlance "Digital Services" is a wide category, so this is about renting a server (VPS), say for web-hosting, mail, or off-site data backup, from a company based outside the UK, be that EU, US, or elsewhere.

Must an overseas hosting company be UK VAT registered in order to sell in to the UK (and if so, what happens if they're not)?

If they invoice with an EU VAT number only, can you supply your GB VAT number to operate VAT "reverse charge"?

If they invoice with an EU VAT number only, and VAT applied, can you reclaim that VAT on your VAT return?

FWIW, I did research (links below) but failed to reach definitive answers.

http://www.gov.uk/guidance/vat-place...es-notice-741a
http://taxbackinternational.com/blog...rge-vat-brexit
http://www.quaderno.io/blog/2021-bre...ldwide-sellers

Thanks.

[Lance]

Hi,

In VAT parlance "Digital Services" is a wide category, so this is about renting a server (VPS), say for web-hosting, mail, or off-site data backup, from a company based outside the UK, be that EU, US, or elsewhere.

Must an overseas hosting company be UK VAT registered in order to sell in to the UK (and if so, what happens if they're not)?

If they invoice with an EU VAT number only, can you supply your GB VAT number to operate VAT "reverse charge"?

If they invoice with an EU VAT number only, and VAT applied, can you reclaim that VAT on your VAT return?

FWIW, I did research (links below) but failed to reach definitive answers.

http://www.gov.uk/guidance/vat-place...es-notice-741a
http://taxbackinternational.com/blog...rge-vat-brexit
http://www.quaderno.io/blog/2021-bre...ldwide-sellers

Thanks.

Ask your accountant????

Must an overseas hosting company be UK VAT registered in order to sell in to the UK (and if so, what happens if they're not)?
There is no need for an overseas company to register for UK VAT. Why would there be? You don't need to Google that just think about it for 5 seconds. Are Netflix/Microsoft/Adobe/etc UK VAT registered?
If not then they cannot charge UK VAT (again - no Google needed)

If they invoice with an EU VAT number only, can you supply your GB VAT number to operate VAT "reverse charge"?
Yes you can use reverse charge. You don't need to supply your VAT number for that

If they invoice with an EU VAT number only, and VAT applied, can you reclaim that VAT on your VAT return?
Err..... see reverse charge..... you don't claim VAT back as no UK VAT has been applied. This is what the reverse charge is all about.