Budget update on income for VAT

[Onthebrightside]

I've become a little confused about when we would have to sign up for VAT. Over half of our work is for overseas clients so thus far we haven't gone over the UK income threshold requiring us to register for VAT.

However, in the recent budge although they up'd the threshold for VAT my understanding is that this now includes overseas work, which would mean that we would tip over the £90,000 and need to register for VAT,

Can anyone advise if VAT income now includes overseas payment (changed in the recent budget?)

Thank you in advance for any help anyone can give.

 

[lesvatadvice]

The matter is quite complex. Some income charged to non-UK clients is taxable and counts towards VAT registration; some doesn't. This depends on the 'Place of Supply' rules.
Broadly, B2B supplies are not taxable, B2C supplies are. But there are some exceptions.
And, even though B2B supplies are not taxable, you can still recover UK input tax, so it may be worth registering.
Lots of variables, I'm afraid. You probably need to sit down with your bookkeeper or Accountant, reviewing input tax too, to decide the best option. And, plan ahead too.