Simple VAT Question

[ASB]

http://customs.hmrc.gov.uk/channelsP...ument#P32_3456

May help clear it up a bit.

As an example I sell some web hosting as part of Plan B. One of my customers is in Canada so I do not charge her VAT because I am supplying a service to somebody who is outside the EU and she is not liable for VAT.

Hope this helps.

I'm sure you are right for your circumstance but is it as absolute as that?

Are there not some cases where the services could be classed as digitised product and as such the places of supply is potentially the UK [depending upon what the product is] ?

It may be that because the customer is outside the EU this can never apply under any circumstances, but it can certainly apply with an EU based customer.

[Ardesco]

I'm sure you are right for your circumstance but is it as absolute as that?

Are there not some cases where the services could be classed as digitised product and as such the places of supply is potentially the UK [depending upon what the product is] ?

It may be that because the customer is outside the EU this can never apply under any circumstances, but it can certainly apply with an EU based customer.

You would have to double check with your accountant, Generally speaking supplying to somebody outside Europe won't be caught by VAT, but there are exceptions. For example you can't supply a UK based company something outside Europe (i.e. send it to their US office) without paying VAT as that would be seen as getting around the legislation. I believe that various products are not except either. Generally speaking services should be OK.

Do double check everything though, you do not want to fall foul of the VAT man.

[ASB]

Do double check everything though, you do not want to fall foul of the VAT man.

I certainly won't be, I just just a bit worried that the guy who asked "are these supplies to a US client exempt" might. There isn't an absolute certain yes answer.

[Ardesco]

I certainly won't be, I just just a bit worried that the guy who asked "are these supplies to a US client exempt" might. There isn't an absolute certain yes answer.

If he is supplying code it can be classified as eCommerce. If his customer is a US resident living in the US there should be no issue.

http://customs.hmrc.gov.uk/channelsP...yType=document

See the above link for some more detailed info.