Commentary

V7.144A Registering for VAT with no UK income (service business)

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.144A Registering for VAT with no UK income (service business)

Part V7 Tax planning | Commentary

V7.144A Registering for VAT with no UK income (service business)

The place of supply for most services is based on the location of the customer, assuming the customer is in business. So a UK accountant doing accountancy work for business clients in France (EU) or Australia (non-EU) will not charge UK VAT.

In such cases, the business can still register for VAT in the UK and benefit from input tax recovery on its costs and overheads. This facility is allowed as long as the services in question would be taxable if supplied to a UK customer (ie not exempt).

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