VAT - Just to confirm

[terrygbarnes]

After a lot of hunting around I have come to the conclusion that I will need to be registered for VAT - can you please take a look and see if my thoughts are correct:

•*Only supplying online services and not actual physical goods
•*Turnover over £65,000 in the first year
•*Will be supplying online advertising space for UK, EU and Worldwide customers.

Therefore I only need to charge VAT to people purchasing within the UK - is that correct?
All other customers are not required to pay VAT on top of the service I'll be providing.

Does this all sound correct - any help would be much appreciated

 

[DayTM]

I'm in the same sort of area and VAT registered since the 1st of January, and that's my understanding of it, although I'm on the flat rate scheme so I only have to repay the VAT at 9%. I work on commission and the UK and EU based companies paying me add the VAT, the rest don't.

 

[terrygbarnes]

I'm in the same sort of area and VAT registered since the 1st of January, and that's my understanding of it, although I'm on the flat rate scheme so I only have to repay the VAT at 9%. I work on commission and the UK and EU based companies paying me add the VAT, the rest don't.

My understanding was that if the person in the EU based country was buying the service for business purposes then they wouldn't be required to pay VAT?

Why do they make these things so tricky to understand!

 

[DayTM]

Oh, hang on. I think you're right about the EU stuff, scratch what I said. I'll have to check with my account as I'm still very confuzzled about the whole thing.

 

[3pic]

Have a look at HMRC Notice 741 (link below) and pay particular interest to Chapters 11 and 12 as these are most relevant :-

http://customs.hmrc.gov.uk/channels...ntent&id=HMCE_CL_000346&propertyType=document

and then after your anadin has kicked in, have a look at info Sheet 01/03 :-

http://customs.hmrc.gov.uk/channels...ntent&id=HMCE_CL_000902&propertyType=document

At the bottom of that page, have a look at FlowChart 1.

From 2010, the EU will simplify the treatment of VAT and e-services/internet trading - and it couldn't come sooner.

 

[terrygbarnes]

Have a look at HMRC Notice 741[/URL]

At the bottom of that page, have a look at FlowChart 1.

From 2010, the EU will simplify the treatment of VAT and e-services/internet trading - and it couldn't come sooner.

Many thanks for this - it's been a long day today and I'm sure I'll need my brain intact to understand this :| thanks again