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Consultancy for USA Company

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    Consultancy for USA Company

    I've been approached by a US company to provide a small piece of consultancy via telephone and email.

    I've asked about invoicing and VAT etc had had the following reply:

    "Your consulting services were provided to xxxxxx, which is a United States entity. Accordingly, ValueAdded Tax (VAT) is not applicable."

    Is this right? As I'm providing the services from the UK, the fact that the company is US based makes no difference?
    Cenedl heb iaith, cenedl heb galon

    #2
    A B2B supply of consultancy services to a business outside the UK is outside the scope of UK VAT and as such no VAT is chargeable.

    If you’re VAT registered and supplying overseas clients you really need to read and understand place of supply rules.

    Comment


      #3
      Originally posted by TheCyclingProgrammer View Post
      A B2B supply of consultancy services to a business outside the UK is outside the scope of UK VAT and as such no VAT is chargeable.

      If you’re VAT registered and supplying overseas clients you really need to read and understand place of supply rules.
      Thanks - where do I find "place of supply rules" - is that a HMRC doc?

      Dave
      Cenedl heb iaith, cenedl heb galon

      Comment


        #4
        Originally posted by Bluebird View Post
        I've been approached by a US company to provide a small piece of consultancy via telephone and email.

        I've asked about invoicing and VAT etc had had the following reply:

        "Your consulting services were provided to xxxxxx, which is a United States entity. Accordingly, ValueAdded Tax (VAT) is not applicable."

        Is this right? As I'm providing the services from the UK, the fact that the company is US based makes no difference?
        I do the same, and was advised the same by my accounts, you still count the income on your VAT but it is 0 rated
        Politicians are wonderfull people, as long as they stay away from things they don't understand, like working for a living!

        Comment


          #5
          Originally posted by Bluebird View Post
          Thanks - where do I find "place of supply rules" - is that a HMRC doc?

          Dave
          LMGTFY

          Place of supply of services (VAT Notice 741A) - GOV.UK

          Comment


            #6
            Originally posted by portseven View Post
            I do the same, and was advised the same by my accounts, you still count the income on your VAT but it is 0 rated
            No, it is not zero rated. It is outside the scope of UK VAT - i.e. it’s not taxable for VAT purposes It is still included in Box 6 of your VAT return if you are on the standard VAT scheme but you should exclude it entirely if you are on the flat rate scheme (out of scope supplies are not included in your flat rate turnover calculation).

            Comment


              #7
              Originally posted by TheCyclingProgrammer View Post
              Many Thanks
              Cenedl heb iaith, cenedl heb galon

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