VAT registration

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DJR51

  • #1
    Hi all

    As a non-established taxable person (based in the US), I am providing consultancy services to a UK VAT registered business customer. The general place of supply rule applies, meaning the place of supply is where the business customer belongs (i.e. the UK).

    My customer has asked that I VAT register in the UK and charge them UK VAT, rather than them having to account for VAT under the reverse charge.

    I have no establishment and no staff in the UK - am I able to VAT register on the above basis, which I assume is a voluntary UK VAT registration? Please could somebody provide an answer, and also some evidence in HMRC guidance and/or tax law if possible.

    Thank you in advance.

    DJR
     
    lesvatadvice

    lesvatadvice

    Free Member
    Jul 7, 2011
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    Cambridgshire
  • #2
    The answer is that you are required to be registered in the UK. There is no registration threshold for non-UK businesses. The formal HMRC note is here: http://www.hmrc.gov.uk/briefs/vat/brief3112.htm, and follows a European Court decision several years ago.
    You can now register online, even though you are outside the UK.




    (Sales pitch - I can arrange all this for you, as I already act for a number of non-UK resident companies.)
     
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    D

    DJR51

  • #3
    Hi Les

    Thanks for getting back to me.

    However, the key point in my query is that VAT should usually be accounted for under the reverse charge by the customer in the UK, thus meaning there is no requirement for me to VAT register.

    However, is it possible for me to register for VAT in the UK and charge VAT, instead of the customer using the reverse charge mechanism?

    Cheers,
    DJR
     
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    D

    DJR51

  • #5
    Thanks Les - that's what I was hoping you would say. Strangely, HMRC have not been so accommodating, and are claiming that we are not entitled to VAT register because "it is the customer's responsibility to account for VAT under the reverse charge mechanism where they belong and the supplier is not entitled to register for VAT (in the UK)".
     
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    Helmut

    Free Member
    Jun 9, 2011
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  • #7
    lesvatadvice said:
    The answer is that you are required to be registered in the UK. There is no registration threshold for non-UK businesses. The formal HMRC note is here: http://www.hmrc.gov.uk/briefs/vat/brief3112.htm, and follows a European Court decision several years ago.
    You can now register online, even though you are outside the UK.




    (Sales pitch - I can arrange all this for you, as I already act for a number of non-UK resident companies.)
    Click to expand...

    Why is it required to be VAT registered?

    If supplying consultancy services from the US to a UK business, it is not required to register for VAT in the UK. The new rules do not affect businesses supplying services subject to the reverse charge in the UK. This is stated in the brief that you linked to. Extract below

    "Existing UK place of supply rules have not been changed. Overseas businesses making only reverse charge supplies of services to the UK will not normally be affected by the removal of the threshold."
     
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