Hi, I'd be very grateful if someone could enlighten me on a little legal tax issue.
I'm a UK sole trader, that's about to start a website, selling digital services online.
Anyone could enter the website and buy from anywhere in the world, so technically the sales could be international.
Now... I have to setup how much tax, and which tax will be charged automatically on the invoices based on the client's billing address. As far as I understand, if a UK based client buys from me and I'm below the 85000 UK VAT threshold that means that I do not register for VAT, and If I'm not registered I should not collect it. Does that mean that the UK client will have 0% Tax written on his invoice?
And what about international clients? I have no "nexus", in any other country, just the website. Should they pay 0% tax too? And if that's not the case, how do you figure out what to charge, and how do you transfer the money you collected on behalf of a State to them?
Am I overthinking this? Any help is appreciated
I'm a UK sole trader, that's about to start a website, selling digital services online.
Anyone could enter the website and buy from anywhere in the world, so technically the sales could be international.
Now... I have to setup how much tax, and which tax will be charged automatically on the invoices based on the client's billing address. As far as I understand, if a UK based client buys from me and I'm below the 85000 UK VAT threshold that means that I do not register for VAT, and If I'm not registered I should not collect it. Does that mean that the UK client will have 0% Tax written on his invoice?
And what about international clients? I have no "nexus", in any other country, just the website. Should they pay 0% tax too? And if that's not the case, how do you figure out what to charge, and how do you transfer the money you collected on behalf of a State to them?
Am I overthinking this? Any help is appreciated
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