I have a limited company client where the director has moved to the EU and is now resident in an EU country for tax purposes. As the director works from home, providing services, there is no company presence in the UK other than the registered office.
The company provides consultancy services to two main customers, one in the EU and one in the UK.
What is the position for VAT registration? Does the company have to register in the EU country (Spain, in this particular case) as the turnover is over the Spanish threshold of Euro 35,000? Or does the UK distance selling threshold of £70,000 apply?
By far the larger of the two customers is in Spain so the turnover on that job would certainly be over Euro 35,000.