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Where Taxpayers and Advisers Meet

VAT registration - does turnover to USA count?

Lsp54
Posts:98
Joined:Tue Sep 15, 2009 5:11 pm
VAT registration - does turnover to USA count?

Postby Lsp54 » Fri Sep 30, 2022 9:00 am

Hi,
A seller makes all her sales through Etsy, importing crystals from (say) China or South Africa. The goods get delivered to the UK and then are sold through Etsy mainly to USA or the rest of the world, with a few sales going to UK or EU customers. As the seller is approaching the £85,000 threshold with total worldwide sales, I'm wondering if the 'rest of the world' sales need to be counted towards the threshold. I've researched this and find various answers to be contradictory.

What does 'place of supply' mean? The customer is in USA, but the crystals were here in the UK at the time they were sold.
I've heard an allowance can be made if nearly all the sales are outside the scope?

Thank you so much for reading this.

les35
Posts:640
Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT registration - does turnover to USA count?

Postby les35 » Mon Oct 03, 2022 1:42 pm

Retail sales to non-UK customers are zero-rated. As such they count towards a taxpayer's registration threshold.

Lsp54
Posts:98
Joined:Tue Sep 15, 2009 5:11 pm

Re: VAT registration - does turnover to USA count?

Postby Lsp54 » Wed Oct 05, 2022 9:42 am

Thank you very much for your reply.
It does indeed look as though registration is necessary, with making tax digital etc and all it entails. It was worth checking because with so few sales in the UK or EU, there won't be much VAT due anyway.
Thanks again.

les35
Posts:640
Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT registration - does turnover to USA count?

Postby les35 » Thu Oct 06, 2022 10:32 am

You might consider applying for Annual Accounting, with your VAT Return matching your financial year (31 March?). You could do all your numbers for the year at the same time.

Lsp54
Posts:98
Joined:Tue Sep 15, 2009 5:11 pm

Re: VAT registration - does turnover to USA count?

Postby Lsp54 » Thu Oct 06, 2022 11:00 am

OK! I'll have to look at that. Might be easier - didn't realise this was an option.
And It's so hard on Etsy to get sales reports by country of customer. And with high number of retail sales per day - 30 plus, these all have to be spreadsheeted for Vat purposes. If anyone has a shortcut to this issue do let me know.
Thanks to everyone.


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