Zero rated VAT?

[1977]

Hi,

I'm looking to onboard a new customer who is in America (B2B).

I offer a service. Am I correct in saying that it'll be zero rated?

 

[NickGrogan]

Where will the service be provided?

 

[1977]

The service will be provided from the UK, where we are, and the company that's receiving our service is in the US

 

[UK Contractor Accountant]

It's not zero rated Supply

It's an outside the scope of VAT supply (exempt).

 

[1977]

It's not zero rated Supply

It's an outside the scope of VAT supply (exempt).

Got it, thanks

 

[DWS]

It will also depend on what services are being supplied as to whether it is outside the scope of UK VAT

 

[David Griffiths]

It is not necessarily zero rated just because the customer is in the US. The OP hasn't said what service is being provided and that is important in determining the VAT status of the service.

There are rules about the place of supply of services. The general rule is that the place of supply is where the customer belongs, but this being VAT there are of course exceptions. You need to look at VAT Notice 741A Place of Supply of Services to see where the service being provided fits in.

On balance it probably is a case for zero rate treatment but you need to be sure.

 

[Bobbo]

Impossible to answer this question properly without OP specifying what the 'service' is - as various services are an exception to the general rule.

 

[1977]

Impossible to answer this question properly without OP specifying what the 'service' is - as various services are an exception to the general rule.

Specific type of marketing

 

[GriffithAccts]

It's not zero rated Supply

It's an outside the scope of VAT supply (exempt).

It is not exempt. It is a vatable supply at 0%, so Zero rated.

 

[GriffithAccts]

Specific type of marketing

Zero rated. It is still a vatable supply but at 0% VAT, so Zero rated. If you need help, reach out.

 

[DWS]

Zero rated. It is still a vatable supply but at 0% VAT, so Zero rated. If you need help, reach out.

What makes you think it is not ‘outside the scope’ of UK VAT which is neither exempt or zero rated?

 

[GriffithAccts]

Zero rated. It is still a vatable supply but at 0% VAT, so Zero rated. If you need help, reach out.

I will be humble and got this wrong. I did not read the question and thread fully. It is outside the scope of VAT for services to the USA.

 

[1977]

I will be humble and got this wrong. I did not read the question and thread fully. It is outside the scope of VAT for services to the USA.

So if the price of the service $3000 then it’s a flat $3000 I charge to the US customer.