VAT on Membership website? Too confused :(

[azdaboss]

I am looking to start a new membership based B2B website. I am currently VAT registered.

All my customers will be resellers (hence the B2B), but they won't necessarily have registered businesses. I state clearly on the website we do not sell to the public. In return for their membership, they will have access to discounts for purchases on my websites, as well as downloading ebook guides.

If my membership price is £15 per month, and my customers come from all over the world (UK, EU, non-EU etc.), how would I go about charging VAT on invoices?

Would I have to go through each transaction and account it as standard: ie 20% for UK and EU, and N/A for international, or would ALL transactions be exempt?

I can't find any reliable source online, some say it's all exempt, some say it shoud be split etc etc.

I have no idea! Please help!

 

[andygambles]

Charge everyone VAT except members outside the EU and members within the EU who supply you a valid VAT number.

 

[teddys]

- Your business is about supply of services

- In order to determine the taxability of supplies of services you will need to establish the place of supply

- In the case of services the general rule for a B2B supply is that the place of supply is where the customer is established

- However, your services, in my view, constitute electronically supplied services (see definition )

- B2B Electronically supplied services are further subject to ‘used and enjoyment’ rule whereby VAT is charged if used and enjoyed in the UK

- So in short you need to charge VAT if the services are used and enjoyed in the UK, or held to be so. See 17.8 here for some more insight

Hope this helps