Do foreign sales count towards vat threshold ?

[gbcv]

Do foreign sales count towards vat turnover threshold ?

Eg if the Uk domestic turnover was £60k and the international turnover was £60k does that put the company above the vat threshold ? Eg £85k

Does the answer depend on wether the international turnover is EU or rest of world ?

 

[DontAsk]

You could have had your answer 40 minutes ago if you had put your question into google. Some of the answers are even on this forum https://www.ukbusinessforums.co.uk/...nt-towards-the-vat-turnover-threshold.314586/

 

[Bobbo]

B2B or B2C?

 

[DontAsk]

B2B or B2C?

Does it matter?

 

[Bobbo]

Does it matter?

Absolutely

Also whether its goods or services which OP hasn't stated.

Depending what OP means by 'foreign sales', the answer could be that the foreign sales are zero-rated, standard rated or outside the scope of VAT.

 

[japancool]

standard rated

How can a foreign sale be standard rated? Can you give an example?

 

[lesvatadvice]

How can a foreign sale be standard rated? Can you give an example?

rent of commercial building, etc,
It's VAT. Do not assume anything!

 

[lesvatadvice]

Most B2C supplies of services are standard rated, where the recipient is located outside the UK.

 

[japancool]

rent of commercial building, etc,
It's VAT. Do not assume anything!

But is that a foreign sale? I know in this case it's an invoice to a foreign company but place of supply rules apply, don't they?

 

[lesvatadvice]

But is that a foreign sale? I know in this case it's an invoice to a foreign company but place of supply rules apply, don't they?

I interpret the phrase 'foreign sale' as a sale to a non-UK person. VAT legislation refers to Place of Supply rules, as you say. The OP does need to provide a little more information so we can give an informed response.

 

[Bobbo]

How can a foreign sale be standard rated? Can you give an example?

I see Les has already replied, but the example I would've gave would be a B2C supply of services (for which under the general rule the place of supply is where the supplier belongs irrespective of customer location).