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Where Taxpayers and Advisers Meet

VAT on digital services

Posts: 161
Joined: Wed Aug 06, 2008 3:43 pm

VAT on digital services

Postby pjclar02 » Thu May 17, 2018 5:28 pm

Hello there

If a company provides digital downloads to consumers, the place of supply for these is the country in which the customer is resident. If this is the USA, then my understanding is that such a supply is therefore outside of the scope of UK VAT - as such, any sales of digital downloads to a consumer based in the US will not count toward the UK VAT registration threshold. Is this correct?

Many thanks

Posts: 38
Joined: Wed Jul 01, 2015 3:28 pm

Re: VAT on digital services

Postby absolutevat » Fri May 18, 2018 3:16 pm

Correct, place of supply is outside of the UK, and does not contribute to threshold.

Note that whilst the US does not require any tax registration for such supplies, many non-EU countries do require VAT/GST registration for the non-resident supplier of B2C digital services.

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