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I have a client who is VAT registered and he is going to work in USA, how would he invoice them and would this include VAT?

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12th Mar 2012 15:47

It depends...........

If your client is supplying services to another business, then under the new place of supply rules VAT is due where the customer belongs (general rule) - so no UK VAT.

However, if your client is supplying services that fall under the special rules, then VAT will be due where he has his established business (UK).

What exactly will your client be doing for the USA customer?

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13th Mar 2012 12:14


Thanks for you comment, he is doing consultancy work within the oil industry!

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13th Mar 2012 16:04


If it is genuine "consultancy", then that's an intangible service and follows the general rule - i.e. the place of supply is where the business customer belongs,  no UK VAT.

He would just invoice the USA customer for his services and no mention of UK VAT on the documentation.


NB I know nothing about  USA "Sales Tax" rules, so your client might have to check out the local implications from an adviser there.

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By zebaa
13th Mar 2012 17:02

Sales tax is levied by the State, not the Feds. So it depends on where you reside and your customer resides. Some States have no sales tax too.

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15th Mar 2012 01:46

Uk Fees and Vat in U.S.

In all ways resident and in all ways a U.S. taxpayer, I have retained landed property interests in the U.K. Do I have to pay British 20% VAT on agent's, solicitor's and accountant's fees?

From the comments above it would seem not. 

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15th Mar 2012 04:57


Probably. Services relating to land attract VAT based on where the land is situated. This is an exception to the general rule mentioned above. 

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15th Mar 2012 11:42


Not good for inward investment!

Non-agricultural properties exempt?

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15th Mar 2012 12:24


Because the land is in the UK, then services relating to that land are subject to UK VAT at the standard rate. It would not matter where the owner is resident or whether it is agricultural or residential.

The supply of residential property is exempt, but it would be the landlord making the exempt supply, not the agent who acts for the landlord.


Depending on what services your UK accountant is providing to you, it may be that no UK VAT is chargeable as the services could be outside the scope of UK VAT - there is an exception within Schedule 4A, para 16(d) of tha VAT Act 1994. This could also apply to some services supplied by your UK lawyer.

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