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What are the VAT establishment rules for B2B when being invoiced from the US

What are the VAT establishment rules for B2B...

My client is a US company that invoices its UK client for IT Services performed on the client premises.

While the place of supply is where the customer based "B2B" and  therefore the UK customer would reverse charge the transaction.  What are the VAT establishment rules ? Would the US company need to register to VAT.  They would be earning more than 1m GBP through onsite services in UK

I thought the VAT rules were changing from 1st December ?

Any immediate advice would be appreciated.


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06th Dec 2012 07:56

The change you are thinking of is the effective removal of the VAT regristation limit for businessess that are suppplying VAT supplies in the UK, as from 1st December 2012.


In my view, as the US comany is supplying services in the UK, they will need to regisiter.


The details are here on HMRC website.


If you don't live in the UK or your place of business isn't in the UK

From 1 December 2012 the UK VAT registration threshold will no longer apply to you.

Your registration date will be the earliest date that either:

you make any taxable supplies hereyou expect to make any taxable supplies here within the next 30 days.

You must register as a Non-Established Taxable Person (NETP). You may also want to appoint a tax representative or agent to keep VAT records and accounts on your behalf - that's up to you.


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06th Dec 2012 08:10


Although I've yet to read the rules in detail, I don't think UK registration would apply in rhis case. If reverse charge applies, supplies are deemed to have been made by the recipient.

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06th Dec 2012 09:04


I've typed this a few times now and it hasn't posted... not sure what's going on...

So I'll be quick:  BKD is right, where the reverse charge applies the customer has made the supply for VAT purposes, so no need for the US company to register.


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