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Should I register for VAT?!

Should I register for VAT?!


I was self-employed from 2010 and before.  I was advised to make a Limited Company by my account for many reasons.  In short, I am a project manager but freelance out to companies (one company is my main employer).  All my employers are from overseas, no action is done within the UK (or if it is it is very small, under 5k turnover a year).

Do I have to pay tax once I turnover more than the threshold?  I'm not aware that I do and I haven't reached 70k yet, but I may do this year and it's weighing on my mind and I'm uncertain.  I've read a lot of documents, including on HMRC but haven't been able to determine if I'm supposed to register or not for VAT.

Thanks for any help!


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By pawncob
27th Feb 2012 21:57


Once your turnover exceeds £73k IN ANY TWELVE MONTH PERIOD, or you believe you will exceed that turnover, you mus register for VAT. 



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By Wootty
to lionofludesch
27th Feb 2012 22:12

Thanks for that link Pawncob.  I read it before, that part made me think I did have to register for VAT... but then I read this from that page;


You supply goods or services from the UK to other countries

If you supply goods and services both inside and outside the UK, then you may need to register for UK VAT if the value of your UK supplies alone exceeds the registration threshold.

You don't need to include supplies you make in other countries when calculating your VAT taxable turnover for registration purposes - so leave out of your calculation any goods and services you supply where the place of supply is another country rather than the UK.


All my services are online management of companies based outside UK (some in EU, some not).  Does the 73k turnover still apply?


Thanks for your response.

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28th Feb 2012 08:46

Services to businesses (which clearly all your customers are) are treated as supplied where the customer belongs, so in their country.  There are exceptions to this, but I don't think that applies in this instance.

So if all your services are to overseas businesses I don't believe you will have to register in the UK.

However, you may have to register in the customer's country if you exceed their thresholds, and note some EU countries have VERY low thresholds. 

That was mostly to put you by until Pawncob comes back :)


#Edit# Sorry, just need to add, if the customer is non EU there will be no VAT consequences, VAT is EU only.

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