can a US business charge vat to the UK (digital goods)

Discussion in 'International Business' started by Rardo, May 24, 2012.

  1. Rardo

    Rardo UKBF Newcomer Free Member

    Posts: 2 Likes: 0
    with regards to digital sales (web hosting to be specific) can a company based in the US give me a invoice that includes VAT?
    Are they allowed to charge for VAT if they are not registered because their in the US?

    I'm asking because i am VAT registered myself, and need to know if I am able to claim VAT back on this or not, or even if i should pay vat on this.

    Thanks in advanced
    Posted: May 24, 2012 By: Rardo Member since: May 23, 2012
    #1
  2. dallis

    dallis Guest

    Posts: 10 Likes: 0
    I don't think they can, but I'm not certain - I think that all businesses based outside of the U.K have goods and services which are VAT-free for their U.K customers.
    Posted: May 29, 2012 By: dallis Member since: May 29, 2012
    #2
  3. Graconnor

    Graconnor UKBF Newcomer Free Member

    Posts: 15 Likes: 2
    Only UK VAT registered companies can charge VAT to other UK companies / individuals. IF they are charging VAT then they should have their VAT number on the invoice.
    Posted: May 30, 2012 By: Graconnor Member since: May 21, 2012
    #3
  4. Chris Ashdown

    Chris Ashdown UKBF Regular Free Member

    Posts: 4,835 Likes: 1,067
    Wrong any EU company that is vat registered should invoice including vat

    Does the American company sell via a UK or EU office, i.e. where does the invoice state it comes from and does it include a vat number?

    Are you confusing US state tax as VAT?
    Posted: May 30, 2012 By: Chris Ashdown Member since: Dec 7, 2003
    #4
  5. tasmanialtd

    tasmanialtd UKBF Newcomer Free Member

    Posts: 19 Likes: 0
    only companies with a VAT number can add VAT...and US companies do not have VAT...only "sales tax".

    Not applicable in Europe.
    Posted: Jun 15, 2012 By: tasmanialtd Member since: May 30, 2012
    #5
  6. Graconnor

    Graconnor UKBF Newcomer Free Member

    Posts: 15 Likes: 2
    Posted: Jun 15, 2012 By: Graconnor Member since: May 21, 2012
    #6
  7. tasmanialtd

    tasmanialtd UKBF Newcomer Free Member

    Posts: 19 Likes: 0
    Graconnor...if an EU company has a EU VAT nr...you can charge VAT...there is a new Interstat that tracks this now...and declarations should be made...but you must have the VAT nr for both companies to do this.

    You dont charge VAT if the other company doesnt have an EU Vat nr. though
    Posted: Jun 15, 2012 By: tasmanialtd Member since: May 30, 2012
    #7
  8. Graconnor

    Graconnor UKBF Newcomer Free Member

    Posts: 15 Likes: 2
    Then I shall submit to your knowledge, however we as a company do not do things this way.
    Posted: Jun 15, 2012 By: Graconnor Member since: May 21, 2012
    #8
  9. kulture

    kulture UKBF Regular Moderator

    Posts: 6,497 Likes: 1,779
    If ANY companies sales in the UK exceed £77k then they have to register to VAT and thus charge VAT. It does not matter if the company is registered in Russia, USA or the UK.
    Posted: Jun 16, 2012 By: kulture Member since: Aug 11, 2007
    #9
  10. faradaykeynes

    faradaykeynes UKBF Contributor Full Member - Verified Business

    Posts: 2,394 Likes: 421
    £77k threshold is for UK sales only, no need to account for out side UK sales for determining the vat registration. Even if company is VAT registered, generally exports of products or services outside UK are not subject to VAT but in some cases that does not apply.
    Posted: Jun 16, 2012 By: faradaykeynes Member since: Apr 19, 2012
    #10
  11. Chris Ashdown

    Chris Ashdown UKBF Regular Free Member

    Posts: 4,835 Likes: 1,067
    Posted: Jun 16, 2012 By: Chris Ashdown Member since: Dec 7, 2003
    #11
  12. SuffolkDesigns

    SuffolkDesigns UKBF Old Timer Full Member - Verified Business

    Posts: 2,764 Likes: 355
    Last edited: Jun 16, 2012
    Posted: Jun 16, 2012 By: SuffolkDesigns Member since: Jul 5, 2005
    #12
  13. Chris Ashdown

    Chris Ashdown UKBF Regular Free Member

    Posts: 4,835 Likes: 1,067
    if you are vat registered then all sales to eec countries must include vat unless they are vat registered and present their own countries vat number
    Posted: Jun 16, 2012 By: Chris Ashdown Member since: Dec 7, 2003
    #13
  14. consultant

    consultant I Can Help Your Business Moderator

    Posts: 4,056 Likes: 507
    They can charge whatever they want!

    UK VAT can only be charged by UK registered companies, where the goods/services are supplied here/in EU.
    Posted: Jun 16, 2012 By: consultant Member since: Jan 21, 2008
    #14
  15. kosterk

    kosterk UKBF Newcomer Free Member

    Posts: 1 Likes: 0
    I wanted to help provide absolute clarity on this issue, but I need 15 posts to post URLs which is a bit of a silly rule if this website wants to encourage people to help you. However business users should visit this site and put a http before it:

    ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/e-services/article_1610_en.htm#a1

    And for us specifically in the UK, this is very useful (you need a https before this one)

    secure.hmce.gov.uk/ecom/voes/welcome.do;jsessionid=B7730006BE7BDAE51E05B7580B435162

    This last link is the UK HMRC home page for Value Added Tax on Electronic Services (VAT on e-Services)

    Hope this helps
    Posted: Oct 13, 2012 By: kosterk Member since: Oct 13, 2012
    #15