60K plus turnover but all non-eu, VAT needed ?

[decworld]

Hi,

If I am selling 60k plus per year services to outside the EU do I need to register for VAT.

No UK/EU income would exist.

Thanks,

[Kevin Hall]

1. You must register for UK VAT when your UK turnover in any 12 month period exceeds the UK VAT registration threshold.

2. The UK VAT registration threshold is currently £67k, but usually goes up every year by a few thousand.

3. The "Place of Supply" (for VAT purposes) determines whether or not a supply counts towards UK turnover.

4. Had you been supplying goods from the UK to non-EC, then the Place of Supply would be the UK (but HMRC usually agree to exempt you from VAT registration, though you still have to complete the formalities such as an aplication form).

5. However, you supply services, and these are far more complex.

6. If you supply "Reverse Chargeable" services (e.g. "ordinary" consultancy services), then the Place of Supply is where your customer is located (i.e. outside the EC) and you need not register for UK VAT.

7. However, if your services do not fall within any of the VAT categories, your services are supplied where you "belong" (for VAT purposes). If you company or residence is in the UK, HMRC are likely to argue that the Place of Supply is the UK and you will be required to register for UK VAT once your turnover (in any 12 month period) exceeds the UK VAT registration threshold.

8. Furthermore, if you purchase "Reverse Chargeable" services from overseas suppliers, the value of these also counts towards your UK turnover.

9. VAT is a tax that requires detail before answers can be found. You might be better off sitting down with a specialist for a short while and laying all the facts before them.

[decworld]

Thats just what I wanted to know.

Thanks