Do I charge VAT to a non-business customer in Turkey?

[Full Media Ltd]

Hi

I provide proofreading and editing services to businesses and individuals around the world and I recently became VAT-registered. I am about to provide my service to a student based in Turkey. Can someone let me know if I need to charge VAT to this individual? I know Turkey isn't in the EU yet but I think they're in the EC, so I'm not 100% sure.

Thanks!

 

[Scalloway]

From here

https://www.gov.uk/government/publi...-notice-741a-place-of-supply-of-services#sec6

The general rule for B2C supplies of services is that the place of supply is where the supplier belongs, irrespective of the location of their customer.

So you charge VAT

 

[Full Media Ltd]

Thanks for your reply. That only applies to customers in the UK or another EC country, though, right? If the customer was in the US, he wouldn't pay any VAT.

Turkey is in the EC, I think, so I guess he does have to pay VAT.

 

[Scalloway]

From 2.2 in the same document.

https://www.gov.uk/government/publi...-notice-741a-place-of-supply-of-services#sec2

If you belong in the UK and the place of supply of your services is the UK, you must charge any UKVAT due and account for it to HM Revenue and Customs (HMRC) regardless of where your customer belongs.

 

[Full Media Ltd]

Thanks. So are you saying that if I'm in the UK and I supply my services from the UK to individuals in other countries, those individuals always have to pay VAT? If they are in the US, Japan, China etc., even though those countries aren't in the EC, they have to pay VAT on my invoices? If that's the case, my accountant has misled me somewhat!

 

[Alan]

This section needs reading https://www.gov.uk/government/publi...notice-741a-place-of-supply-of-services#sec12

 

[Full Media Ltd]

Ah, that explains it! Thank you. My services come under those listed in 12.2, which is why I don't charge VAT outside of the EU - phew! My accountant was right. So that brings me back to my original question: as Turkey is not in the EU but is, I believe, in the EC, do my non-business customers in Turkey have to pay VAT?

 

[Scalloway]

Turkey is not in the EU so non EU rules apply.

 

[Full Media Ltd]

OK, so I don't have to charge them VAT.

 

[Newchodge]

Sorry, I have to ask. " Turkey is not in the EU but is in the EC." What is the EC?

 

[Full Media Ltd]

Ah, are the EC and the EU essentially the same thing? I'm getting confused with the EEA (which Turkey isn't in either). OK, finally I've figured it out. Thanks for all your help!

 

[Raw Rob]

Turkey was an associate member of the EEC/EC but the EC no longer exists, just the EU https://en.wikipedia.org/wiki/European_Economic_Community