If a UK based Ltd compnay supplies good (software) to a USA business, does the UK business need to register for VAT once they have reached the VAT threshold. I understand this to be outside the scope of VAT and therefore they will not need to register for VAT. Do this sound right?
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I am no VAT expert so correct me where I am wrong. The situation described seems to be an export sale that is VAT-taxable, albeit at zero percent. According to HMRC, zero-rated supplies should be considered when working out whether the VAT threshold has been exceeded. I.e., if the zero-rated sales to the USA business has exceeded the VAT threshold in any 12 month period, the UK company is obliged to register.
Are these 'many people' VAT experts? Probably not. Some might be.
Never ever ever take Vat advice from HMRC. EVER.
What you are actually supplying is not very clear, to my befuddled brain at any rate, so might be another reason for a non straight answer, from 'many people'.
Have you considered Matrix's experience or knowledge here or just going to flounder about until you 'think' you have the right answer? But then how will you know if you have the correct answer? Are you prepared o make such a fundamental and potentially extremely costly mistake with your business?
Why would you not pay for some advice from a VAT expert? Or your Accountant?