Do I charge VAT on remote working for USA client?

[kaiser78]

WDYAS ? (para-phrasing more esteemed posters on here of course...)

[jamesbrown]

Almost certainly not, under the general rule for place of supply of services, assuming this is a B2B transaction, but it's worth reading the place of supply rules to make sure you're not covered by a special rule (unlikely).

https://www.gov.uk/guidance/vat-plac...tice-741a#sec6

If the services are outside of the scope of UK VAT, note this on the invoice and do not include your VAT number.

[JB3000]

I had a read on the UK gov website and I'm still in the dark.

Any advice is welcomed.

A quick google search

"Under the general rule, if the service is being supplied to a consumer (rather than a business) in the USA, it will be subject to UK VAT. This means that UK VAT must be charged at the usual UK rate, either standard rate, reduced rate, zero-rated or exempt. The UK business will account for VAT in the usual way.

If the service under the general rule is being supplied to a business customer in the USA, it will be outside the scope of UK VAT (UK VAT is not charged). Some evidence of the business purpose should be obtained.

If the UK business accounts for VAT on the Flat Rate Scheme, it does not need to pay Flat Rate VAT on the value of services which are not subject to UK VAT due to them being performed in the USA or to a customer based there."

VAT between the UK and the USA

[TheCyclingProgrammer]

Not enough information to give a 100% definitive answer but the answer is almost certainly no. There are some services where this isn’t the case but if you’re delivering consultancy/IT services to a foreign business, the general rule for the place of supply applies and the place of supply is where the customer belongs, meaning it’s outside the scope of U.K. VAT and in this case also outside the scope of EU VAT too.

One thing to watch out for is if you’re going through a UK agent or the US company has a U.K. base and you’re contracted to their U.K. entity but if it’s just a US only client and you’re direct then no VAT.

[KentDogWalker]

I had a read on the UK gov website and I'm still in the dark.

Any advice is welcomed.