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Claiming VAT back on web hosting from US company

What process should I follow?

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Hi everyone, thanks a lot for reading this.

I'm the sole director of a UK-based VAT-registered limited company. Before I started trading and before I was VAT-registered, I purchased web hosting from a US-based company. They are registered for VAT MOSS in the UK and charged me UK VAT at 20%, which I paid. This was carried out as a B2C transaction. The only way they allow B2B transactions is by providing a valid VAT number, which I did not have at the time. I have now supplied this, meaning they won't charge any VAT in future and I'll follow the reverse charge procedure, but they do not refund VAT on payments already made.

I have just spoken to HMRC about how to reclaim the VAT already paid, and they stated very clearly and confidently that I should just treat it as I would any other UK VAT paid and reclaim it as UK VAT on my next VAT return. Is this correct? I've read so many conflicting opinions on this matter, but was wondering whether the fact they were VAT MOSS registered in the UK meant it was allowable?

I know that in future, no VAT will be charged from the hosting company and I'll put the VAT through my VAT return using the reverse charge procedure but was very clearly told by HMRC there was no need to do this in this case and to just follow standard procedure for reclaiming the VAT as if I'd paid it to a UK supplier.

If anyone with experience of this could confirm this I'd really appreciate it.

Thanks again!

 

Replies (4)

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By zarar
28th Aug 2019 14:38

Whose name is on the invoice?

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By mad_dwarfer
28th Aug 2019 14:48

The invoice is addressed to my company, and the supplier's US address is displayed.

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RLI
By lionofludesch
28th Aug 2019 14:49

When was the service supplied ?

Before or after the effective date of registration ?

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By mad_dwarfer
28th Aug 2019 14:55

The service was first supplied just under 4 months before the effective date of registration, so falls within the 6 month time period for claiming pre-registration VAT.

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