charging VAT on web purchases

[azdaboss]

I am currently VAT registered and am looking into starting a subscription based website. Lets say I charge a price of £10/month for the site (access to our trading partners). No physical products are delivered, merely just a service for the money they pay.

My question is, because my customers may be from anywhere in the world, ie. UK, EU, international, how would I go about the VAT in the sub price.

The website will have no way of changing prices based on location, so for a UK customer the price would be £10, for international it would be £10. Obviously international customers shouldnt pay VAT so how would I sort that?

Can I say price for UK is £10 incl. VAT for UK and EU customers, and £10 no VAT for international customers?

 

[azdaboss]

Anyone have any ideas?

 

[Scalloway]

Can I say price for UK is £10 incl. VAT for UK and EU customers, and £10 no VAT for international customers?

Nobody says you can't so I would guess you can.

 

[NickMoore]

You have to charge VAT for all customers in the UK and retail customers in the EU. If the customer is a EU VAT-registered business you should charge no VAT and they should then account for the VAT under the reverse charge rules. You do not charge VAT for customers in other countries. However you do have to take reasonable steps to ensure the customers really are located where they say they are.

You might want to search HMRC docs for "place of supply" rules.

 

[andygambles]

The website will have no way of changing prices based on location, so for a UK customer the price would be £10, for international it would be £10. Obviously international customers shouldnt pay VAT so how would I sort that?

Can I say price for UK is £10 incl. VAT for UK and EU customers, and £10 no VAT for international customers?

Why does the website not have a way of changing prices?

You can charge £10 to everyone but will need to hand over the VAT for the UK/EU customers. Therefore you are losing money.

Why not £12 for UK?

You can work it out because the user has to enter their billing details therefore just take the billing address as location of the customer.