Vat on sales to USA

[Herbs16]

Hi, hope someone can help, I am UK based and sell services to America. All my sales are for web design and are paid in dollars to my paypal account. Do I have to register for vat?
Many thanks

[leedsCIMAstudent]

Do you have approx amounts (per annum) of the value of your sales within the UK and value of your sales to the US?

I am thinking that (depending on exactly how you classify the services you provide) that this would fall into Art 9(2)(e) "consulting services" - broadly speaking, I believe your supplies to the USA would be zero rated.

[3pic]

Hopefully this link will work :-

http://customs.hmrc.gov.uk/channelsPort ... e=document

if not google, "Information Sheet 01/03, HMRC" to give the HMRC guidelines on this subject and also some useful flowcharts (as per link above).

Web Design comes under Place of Supply of the customer and so if customer is in USA then they will be outside the scope of VAT.

Only thing to watch out for is where the 'service' is enjoyed in the UK. So if you design a website for your USA client but the website is used mainly for their UK subsidiary's benefit, you'll find the service is a VATable one again! - hence why you should check out the link.

[Daniya]

3pic

The link is very good & simple to understand even for the novice,well done for finding it.

regard
rana