Hi. I posted this in a specific thread on Gibraltar but frankly, it's probably wider.
So I'm totally new to running my own business and VAT and wanting to learn more about this (from an educational point of view). I've worked in SEO for a long time (as a self-employed person) but making a foray into my own business. A lot of my clients/customers are in non VAT counties outside of EU rules (Channel Islands and San Marino specifically). The services from my end are usually consultation for configuring Google products, and buying of advertising services from the likes of Twitter, Google and Facebook (usually Ireland invoicing companies).
Obviously, I'm not looking at any illegality but want to understand about the practical implications of these sorts of setups for both me and potential clients in future. Assume the status quo re: Brexit.
If I was to move to Jersey (or others like Gibraltar) and incorporate/run my new business from there, I would not charge VAT on my services - and there would be no issues for clients in these territories as no vat charges would be levied at either end? Right?
But if I then take on EU based clients (currently the UK), would my setup be a benefit or detriment to them? If I supplied from my home office in Jersey SEO services to a UK client, would I add VAT on my invoice? Assume not as I'm based in a non-VAT territory? Right? But my questions then become:
1. Would they have to account for VAT (either make a payment or alternatively earn a tax credit) for VAT on their end? The benefit/cost question.
2. Does the fact I'm providing digital advertising services change anything?
Thank you
So I'm totally new to running my own business and VAT and wanting to learn more about this (from an educational point of view). I've worked in SEO for a long time (as a self-employed person) but making a foray into my own business. A lot of my clients/customers are in non VAT counties outside of EU rules (Channel Islands and San Marino specifically). The services from my end are usually consultation for configuring Google products, and buying of advertising services from the likes of Twitter, Google and Facebook (usually Ireland invoicing companies).
Obviously, I'm not looking at any illegality but want to understand about the practical implications of these sorts of setups for both me and potential clients in future. Assume the status quo re: Brexit.
If I was to move to Jersey (or others like Gibraltar) and incorporate/run my new business from there, I would not charge VAT on my services - and there would be no issues for clients in these territories as no vat charges would be levied at either end? Right?
But if I then take on EU based clients (currently the UK), would my setup be a benefit or detriment to them? If I supplied from my home office in Jersey SEO services to a UK client, would I add VAT on my invoice? Assume not as I'm based in a non-VAT territory? Right? But my questions then become:
1. Would they have to account for VAT (either make a payment or alternatively earn a tax credit) for VAT on their end? The benefit/cost question.
2. Does the fact I'm providing digital advertising services change anything?
Thank you
Comment