outside the scope of VAT

kelybrenda · Postby **kelybrenda** » Thu Oct 21, 2004 4:02 am

I need help please. If I`m selling educational and training services to non-EC country, it suppose to be outside the scope of VAT. My question is if I shall account it as exempt supply or Non-Vatable transaction. Thank You.

Barry@LordAssociates · Postby **Barry@LordAssociates** » Thu Oct 21, 2004 4:52 am

Educational/training to a non-EU client is outside the scope of VAT- with input tax credit. It is not exempt, so you are entitled to recover UK VAT on any costs attributed to the service you make. Therefore treat it as a non-Vatable transaction in your records.
If you also make exempt supplies of education you could be partially exempt and have to apportion the VAT that you can recover.
If you need further advice you can contact me on 07747 118751.