Should I charge VAT to Non-EU Client? Do I need to pass it onto HMRC?

[MirrorsEdge]

Hi -

I'm UK based with a Ltd. company.

I'm looking at some work that will involve me doing some web development in the UK; but where the end client has a small base in the UK and a larger, main base in Singapore.

The company that found me this work is based in UAE; and I understand the singaporean company get invoiced from and pay UAE.

I'm being asked to do a few weeks work, based in the UK, which will involve workshops/over the phone stuff with Singapore.

My contact at the UAE company (who lives both in the UK and Dubai) advised me I should invoice without VAT, to the UAE company.

I am on the VAT flat rate scheme. If i invoice my client in UAE without VAT; would i be liable to pass on the vat to HMRC, or does it fall outside the scope of VAT?

Tks

[captainham]

You'll be wanting this:

http://forums.contractoruk.com/welco...uk-forums.html

[MirrorsEdge]

Thanks..!

Yes just looked, there's plenty on this topic for sure. Seems like it's genuinely down to where the services are 'supplied'. It's a bit vague. I guess some of these laws were in place before cloud-based global working came into existence...

[captainham]

And this:

HM Revenue & Customs: Exports, supplies of goods and services overseas: charging VAT

[Ketchup]

What does your accountant suggest?

[jamesbrown]

If it's outside of the scope of UK VAT, it's outside of the scope of any VAT calculation, whether under the FRS or otherwise. You just need to determine the first part.