Should a US-based company pay UK VAT for selling subscriptions to UK residents?

[hs63000mik]

Hi there,

My husband and I are Egyptian and live outside the UK. He recently established a company in the US (6 months ago) that sells premium online subscriptions through its website to a global audience.

Our question is: When he sells subscriptions to UK residents, does he need to collect and pay VAT taxes to the UK government?

[johnsamir]

Yes, your husband's company needs to register for UK VAT and charge 20% VAT on digital subscriptions sold to UK residents. This applies regardless of the company's location outside the UK.