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Where Taxpayers and Advisers Meet

Tax requirements for US company

ghotion
Posts: 2
Joined: Tue Dec 12, 2017 8:45 pm

Tax requirements for US company

Postby ghotion » Thu Jun 06, 2019 2:39 pm

Hello,

I run a small ad-supported, web-based business in the USA where I accept payment from individual advertisers (usually about $45 each). I want to expand to include the UK and accept ad payment from the UK in GBP via Paypal, etc. I don't have an office in the UK.

Can someone tell me what taxes I would need to pay on my UK revenue? Is VAT an issue? E.g., assuming that over the course of a year I had 100 advertisers, each paying 40 GBP, what tax requirements would there be? Would I need to register somewhere?

Thanks for any help you can give me.

GlobalTaxAdviser
Posts: 633
Joined: Fri Dec 05, 2014 1:18 am

Re: Tax requirements for US company

Postby GlobalTaxAdviser » Fri Jun 07, 2019 4:27 pm

There will be no Corporation Tax since the place of effective management is in the US. You will need to account for the tax on profits in US

If you are selling digital services from outside the EU to individuals then you will have to register for VAT Moss. If selling to UK businesses then no VAT will apply

mehranmichail
Posts: 6
Joined: Sat Oct 22, 2016 2:33 pm

Re: Tax requirements for US company

Postby mehranmichail » Fri Aug 23, 2019 6:36 pm

Businesses established outside the EU
If you are based outside the EU and supply digital services to consumers in the EU, the place of supply will be where the consumer is located.

You’ll either have to:

register for the VAT Mini One Stop Shop (VAT MOSS) in an EU member state
register in each EU member state where your consumers are located
The £8,818 digital services threshold does not apply and you’re responsible for accounting for VAT on the supply regardless of the value of the sales.

https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers#businesses-established-outside-the-eu


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