Invoice To USA Client (VAT)

Discussion in 'General Business Forum' started by Polaflex, Sep 10, 2019.

  1. Polaflex

    Polaflex UKBF Newcomer Free Member

    16 0
    I run a design firm, so all the goods are digital. I understand that I do not charge VAT to my American clients. My accountant sent me this statement: "US sales will 0% so no VAT, however, the sales are declared at 0%"

    Does anyone know how I would declare this on my invoices (using Xero if that makes any difference)

    Would the tax rate column be: Exempt Income, No VAT, or Zero Rated Income?
     
    Posted: Sep 10, 2019 By: Polaflex Member since: Apr 17, 2018
    #1
  2. OMGVape

    OMGVape UKBF Regular Free Member

    246 30
    Ask your accountant?
     
    Posted: Sep 10, 2019 By: OMGVape Member since: Jan 21, 2018
    #2
  3. Polaflex

    Polaflex UKBF Newcomer Free Member

    16 0
    I was planning on doing so - I was just hoping someone would be able to decipher his words here this evening
     
    Posted: Sep 10, 2019 By: Polaflex Member since: Apr 17, 2018
    #3
  4. Scalloway

    Scalloway UKBF Legend Free Member

    15,202 3,219
    Zero rated.
     
    Posted: Sep 10, 2019 By: Scalloway Member since: Jun 6, 2010
    #4
  5. Polaflex

    Polaflex UKBF Newcomer Free Member

    16 0
    Thank you sir!
     
    Posted: Sep 10, 2019 By: Polaflex Member since: Apr 17, 2018
    #5
  6. Polaflex

    Polaflex UKBF Newcomer Free Member

    16 0
    Accountant replied: Zero rated 0% - Scalloway was correct as always
     
    Posted: Sep 10, 2019 By: Polaflex Member since: Apr 17, 2018
    #6
  7. Polaflex

    Polaflex UKBF Newcomer Free Member

    16 0
    Assuming it would be
    Zero Rated EC Services (as I'm providing digital design services) and NOT just Zero Rated Income

    or does Zero Rated EC Services only apply to EU business'?
     
    Posted: Sep 10, 2019 By: Polaflex Member since: Apr 17, 2018
    #7
  8. OMGVape

    OMGVape UKBF Regular Free Member

    246 30
    Why pay an accountant when you accept free advice here ?

    Anyone can count beans, you are playing someone to count your beans, so go with it or stop wasting your money.
     
    Posted: Sep 10, 2019 By: OMGVape Member since: Jan 21, 2018
    #8
  9. billybob99

    billybob99 UKBF Regular Free Member

    1,163 259
    Maybe because his accountant is fast asleep in bed and he wants an answer right now to invoice his client.

    Cash flow is king.
     
    Posted: Sep 10, 2019 By: billybob99 Member since: Apr 23, 2013
    #9
  10. Polaflex

    Polaflex UKBF Newcomer Free Member

    16 0
    You know it! and plus... I don't just use my accountant for advice.. I use him for my accounting needs lol
     
    Posted: Sep 10, 2019 By: Polaflex Member since: Apr 17, 2018
    #10
  11. OMGVape

    OMGVape UKBF Regular Free Member

    246 30
    Probably true, we’ve all done it. But if poster didn’t get the desired answer I’m sure he/she would await the awakening of the ‘hired help’
     
    Posted: Sep 10, 2019 By: OMGVape Member since: Jan 21, 2018
    #11
  12. Socio South West

    Socio South West UKBF Enthusiast Free Member

    870 214
    As others have said, his accountant is probably snoring gently with his false teeth in the glass and the thick specs on the bedside table... .whereas at 22h00 in the UK it is afternoon in the USA and still the working day.
    Conversely those that are online working in the early hours of the morning may be in conversation with countries to the east of the UK where it will be later in the day.
     
    Posted: Sep 10, 2019 By: Socio South West Member since: Mar 24, 2013
    #12
  13. STDFR33

    STDFR33 UKBF Big Shot Free Member

    3,923 996
    Zero rated doesn't mean no VAT.

    It means VAT at 0%.its quite important that your accountant understands that.
     
    Posted: Sep 10, 2019 By: STDFR33 Member since: Aug 7, 2016
    #13
  14. Mike Hayes

    Mike Hayes UKBF Enthusiast Free Member

    1,049 271
    Use Zero Rated Income.

    Zero Rated EC Services only applies in the EU (European Commission).
     
    Posted: Sep 11, 2019 By: Mike Hayes Member since: Jan 7, 2016
    #14
  15. Polaflex

    Polaflex UKBF Newcomer Free Member

    16 0
    He also said the same thing, I've been using Zero Rated Income on all my USA invoices from now on and Zero Rated EC for circumstances of that in the EU when they are not registered for VAT
     
    Posted: Sep 15, 2019 By: Polaflex Member since: Apr 17, 2018
    #15
  16. Mike Hayes

    Mike Hayes UKBF Enthusiast Free Member

    1,049 271
    Zero Rated EC should only be used when selling to EU registered businesses in the EEA as far as I know. It's for use in cases where you're applying the reverse charge mechanism.

    If the customer is not VAT registered and is in the EU, then you should be applying VAT either at your local rate or the customer's local rate depending on various variables such as the type of sale (goods, services, digital services).

    You really need to go back to your accountant and iron all of this out now before it becomes a much more complicated mess to fix !
     
    Posted: Sep 15, 2019 By: Mike Hayes Member since: Jan 7, 2016
    #16