Do we have to register for VAT?

Do we have to register for VAT?

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Hello

I'm a lowly accounts assistant for a tiny company mainly selling to companies in Europe, the external accountant maintains that even though we sell over 81k in overseas sells to EU countries because we are not VAT registered we are 'out of scope' and so do not have to register for VAT until our UK sales exceed 81k. Can the community reassure me their advise is correct?

Replies (11)

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By User deleted
28th Jan 2015 11:34

I can reassure you ...

... that their "advise" is probably correct. But that your grammar and spelling is not.

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RLI
By lionofludesch
28th Jan 2015 11:37

Homophones

I always thought advice and advise were the easy ones to get right. Practise and practice sound the same but advice and advise don't.

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By iknell
28th Jan 2015 11:42

Depends

See https://www.gov.uk/vat-registration/calculate-turnover

HMRC say to not include overseas sales so you should be ok

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By catwoman
28th Jan 2015 12:02

Thank-you very much for the reassurance and quick responses- thankfully I won't be entering a spelling bee anytime soon. :o) Also apologies for the bad grammar.

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By dstickl
28th Jan 2015 14:48

Cross-border supplies of digital services to consumers to rEU ?

As you don't tell us what your company is selling, perhaps the following link may be of interest: 

https://www.gov.uk/government/publications/vat-supplying-digital-service... ?

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chips_at_mattersey
By Les Howard
28th Jan 2015 15:18

But...

You should not that if you sell goods (not services) to private customers within the EU, the Distance Selling thresholds will apply. This means that, if your sales to any one Member State exceed a certain threshold, you will have to register there. The thresholds vary as well.

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By abelljms
28th Jan 2015 16:41

hmmm

 

 

i would have thought those clever mandarins in bruxelles would have a rule that says:-

"if you flog anything to any EU member state you have to add up all the sales to decide if you r over the limito?"

 

 

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By Minnie136
28th Jan 2015 17:36

Input VAT

It may be beneficial to voluntarily register to reclaim your input VAT.  Depends on whether your UK clients can reclaim it I expect.

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By shaun king
28th Jan 2015 19:17

You don't have to but...

You can ignore the EU B2B sales in calculating the turnover limit but I cannot see that it makes any sense for you not to register as you can recover any VAT incurred on the purchase of the goods and you can also recover VAT charged on your business overheads.

If all your business is B2B, then registering has only financial benefits with a small amount of additional administration.

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By LuKosro
29th Jan 2015 00:38

Hi

Are you supplying digital services to consumers in other Member States? Are you selling goods subject to excise duty? What are the sales figures per Member State in the previous 12 months? 

https://whitehall-admin.production.alphagov.co.uk/government/uploads/system/uploads/attachment_data/file/390300/VAT_MOSS_Flow_chart.pdf

http://www.hmrc.gov.uk/manuals/vatposgmanual/VATPOSG3530.htm

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By catwoman
04th Feb 2015 11:27

Thanks again

Again thanks for all the info guys/girls - My question has been answered.

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