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VAT on services delivered from outside UK (UK LTD)

UK company offering B2C service. Service delivered from outside UK to global audience.

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Hello everyone,

I am non UK resident Director of a UK limited company. The company has a virtual UK address only. No UK staff, no UK premises or any other physical presence in the UK. The company offer 2 different meditation programs. Both consist of digital audios, PDF files and both come with a human coaching element as part of the service. The products and the human support services are delivered from servers in Canada. We have freelance support coaches working through our Canadian servers remotely from USA and Philippines. i.e. they login and offer the coaching service via instant chat or support ticket systems. The business is 100% virtual and no services are supplied directly from the UK. This is a B2C service. 

I have spoken to numerous accountants and numerous staff at HMRC for clarification on if we should charge VAT and/or VAT MOSS but I receive different advice even from HMRC staff. Someone said we sell digital products and should be charging VAT and VAT MOSS, someone else said we should not be charging any VAT or MOSS at all as this is a service delivered from outside the UK and another person said we should charge only VAT to all clients globally. I am totally confused and looking for clarification. Has anyone seen a similar situation or understand our situation enough to advise? Or can anybody recommend a company to give me legal advice on our case?

Thank you in advance.

Replies (2)

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By sculptureofman
16th Aug 2018 16:05

In basic terms I’d say that assuming you have a single supply for VAT purposes, then there is enough human intervention to mean that you don’t meet the MOSS rules.

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By Les Howard
20th Sep 2018 14:56

Certainly not a MOSS supply.
But are you expecting it is a taxable B2C supply (which is most likely), or are you hoping it is exempt?

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