UK VAT while working abroad

[ASB]

Hmmm... a whole bunch of assumptions and every permutation possible but, nope, you're wrong, DS23 is right.

Fine, but why do you think place of supply is South Africa? From what you have described (and the link posted by DS23) I can see no reason why it would be.

[EchoSierra]

Hmmm... a whole bunch of assumptions and every permutation possible but, nope, you're wrong, DS23 is right.

Ok, so you are resident and working in SA, your company in based in the UK and you are supplying to an entity in the EU. Also there is no SA company supplying to the UK Company ??

I am doubtful that your place of supply is SA. It is almost certainly the place where the customer is (assuming they are a business customer) or the UK (assuming the end customer is not a business customer). Assuming it is the former then the supply is outside the scope of UK vat. In this case it is down to the VAT rules of the place where the supply is made (i.e. customer country). This could mean you need to register there and charge their VAT (and of course pay it over to the authorities there).

Now, if it does so happen that the place of supply is SA then your UK company might need to be looking at the relevant reverse charge rules, as might the business customer.

Of course you give no indication of how the services come to be undertaken in SA for a UK based company, this could complicate the issue with SA GST. If you happen to live in SA and work for a UK company there may be an impact here that the authorities are interested in. If there is an SA business involved the obviously the SA GST rules come into play as well. In this case the UK business should almost certainly be self charging VAT on the incoming invoices (and then reclaiming said VAT if approrpiate).

Cross border stuff is usually a complex way of not having to charge any VAT (or at least charging it oneself and claiming it back oneself).

[ASB]

Hey DS23,

Thanks for the link; very useful. My place of supply is South Africa so I'm outside UK and EU VAT. The special rules don't apply as I'm supplying standard IT/business analysis services and am physically located in South Africa.

Bring on the World Cup!!

Ok, so you are resident and working in SA, your company in based in the UK and you are supplying to an entity in the EU. Also there is no SA company supplying to the UK Company ??

I am doubtful that your place of supply is SA. It is almost certainly the place where the customer is (assuming they are a business customer) or the UK (assuming the end customer is not a business customer). Assuming it is the former then the supply is outside the scope of UK vat. In this case it is down to the VAT rules of the place where the supply is made (i.e. customer country). This could mean you need to register there and charge their VAT (and of course pay it over to the authorities there).

Now, if it does so happen that the place of supply is SA then your UK company might need to be looking at the relevant reverse charge rules, as might the business customer.

Of course you give no indication of how the services come to be undertaken in SA for a UK based company, this could complicate the issue with SA GST. If you happen to live in SA and work for a UK company there may be an impact here that the authorities are interested in. If there is an SA business involved the obviously the SA GST rules come into play as well. In this case the UK business should almost certainly be self charging VAT on the incoming invoices (and then reclaiming said VAT if approrpiate).

Cross border stuff is usually a complex way of not having to charge any VAT (or at least charging it oneself and claiming it back oneself).

[EchoSierra]

the hmrc website is pretty clear & straightforward when it comes to vat rules when clients are non uk.

http://www.hmrc.gov.uk/VAT/managing/...orts/index.htm

it depends on the country and the product being sold and the service provided blah blah. i've had some clients who were excempt from vat and raised a no vat invoice.

Hey DS23,

Thanks for the link; very useful. My place of supply is South Africa so I'm outside UK and EU VAT. The special rules don't apply as I'm supplying standard IT/business analysis services and am physically located in South Africa.

Bring on the World Cup!!

[scooterscot]

When I was working in Norway VAT was not charged. Like others have said talk to an accountant.

[DS23]

the hmrc website is pretty clear & straightforward when it comes to vat rules when clients are non uk.

http://www.hmrc.gov.uk/VAT/managing/...orts/index.htm

it depends on the country and the product being sold and the service provided blah blah. i've had some clients who were excempt from vat and raised a no vat invoice.

[ASB]

Why would you be charging VAT, Generally when overseas you shouldn't. Look at the place of supply rules and apply your circumstances and apply service/business type to them.

[doodab]

OK, if I'm working overseas and the company that is paying me says that it cannot/does not pay the 17.5% UK VAT how does that impact my Ltd Company that is based in the UK?

Do I take my total amount of revenue, slice off the 17.5% VAT to give to HMRC and what's left is "my" money?

Or am I allowed to ignore paying the VAT since the work is conducted in a non-VAT country?

Thanks in advance.

You need to talk to your accountant. The chances are you do not need to charge UK VAT, but you may need to register for and charge the local equivalent.

When working in Germany for example, I don't charge UK based clients VAT (they have to do some sort of cross charging to account for it) but I charge German companies 19%.

[EchoSierra]

OK, if I'm working overseas and the company that is paying me says that it cannot/does not pay the 17.5% UK VAT how does that impact my Ltd Company that is based in the UK?

Do I take my total amount of revenue, slice off the 17.5% VAT to give to HMRC and what's left is "my" money?

Or am I allowed to ignore paying the VAT since the work is conducted in a non-VAT country?

Thanks in advance.