VAT on digital services

[pjclar02]

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

[absolutevat]

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.