Do overseas customers buying goods and services in the U.K. have to pay VAT

Discussion in 'Accounts & Finance' started by gbcv, Aug 20, 2018.

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  1. gbcv

    gbcv UKBF Contributor Free Member

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    Do overseas customers buying goods and services in the U.K. have to pay VAT or can the overseas customers claim back the VAT ?

    For instance :

    - If a overseas customer paid for legal advice from a UK firm, for work pertaining to the U.K.

    - if an overseas customer paid for building work to be carried out on their U.K. home, by a U.K. building firm
     
    Posted: Aug 20, 2018 By: gbcv Member since: Feb 12, 2017
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  2. Mr D

    Mr D UKBF Legend Free Member

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    Is the overseas customer VAT registered in the EU?
     
    Posted: Aug 20, 2018 By: Mr D Member since: Feb 12, 2017
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  3. gbcv

    gbcv UKBF Contributor Free Member

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    The overseas customer is a private individual, and not vat registered.

    They may or may not be inside the EU.(case by case some would be some won’t)
     
    Posted: Aug 20, 2018 By: gbcv Member since: Feb 12, 2017
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  4. The Byre

    The Byre UKBF Ace Free Member

    8,991 3,511
    Everything hinges on where the overseas is.

    If they are private individuals, the answer is usually 'Yes.' except for the US when using certain types of services, such as film and TV. I cannot comment on legal work, as this can depend on many things, but building work for a private dwelling - yes.
     
    Posted: Aug 20, 2018 By: The Byre Member since: Aug 13, 2013
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  5. scstock

    scstock UKBF Contributor Free Member

    89 17
    I believe the key question is "where did the supply take place?" - if it is in the UK then most likely VAT is due.

    This came up on my one and only VAT inspection where I had billed a service to a customer in the USA and not charged VAT. The service in this case was garaging a car for them for a year - in my garage in the UK. I paid up what was due and Mr VAT Man went away a happy chappie having met his quota.
     
    Posted: Aug 20, 2018 By: scstock Member since: Mar 27, 2009
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