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samthullner
23rd July 2010, 19:13
Hello,
We have a UK startup Ltd, developing custom computer software and we are not registered for VAT. Our first customer is from an EC member country (they have a valid EC VAT number). Looks like we'll not reach the 70k threshold needed for VAT registration in the near future. Do we have to register for VAT because of this EC sale?
Many thanks in advance, samthullner

paulears
23rd July 2010, 19:37
If you are developing customised software, then all your clients are likely to be registered for VAT. On top, you'll no doubt be buying computers and other bits of expensive kit from VAT registered suppliers. Register voluntarily - and you can possibly make the VAT work for you.

samthullner
23rd July 2010, 19:43
yes, you are right -- we also thought about registering voluntarily, but as we have to invoice that first customer now, we won't be VAT registered for this first transaction, that's why I posted the question. Many thanks