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Where Taxpayers and Advisers Meet

Would US sales contribute to my vat threshold

IntoleranceLab
Posts:8
Joined:Mon Jul 30, 2018 6:36 am
Would US sales contribute to my vat threshold

Postby IntoleranceLab » Wed Aug 08, 2018 11:21 pm

Hi Guys

I run an intolerance testing company.

People buy online and send me hair samples to be tested in my lab . Reports are then emailed back to them.

I am about to start trading in the USA

My question is will the income derived from these sales count towards my vat threshold.

Ie if my turnover is £55000 from the uk then I add 35000 from the usa , do I now have to register for vat or can I keep this seperate ?

Also are there any other us taxes that might apply ?

Thanks in advance
David

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: Would US sales contribute to my vat threshold

Postby les35 » Thu Aug 09, 2018 12:22 pm

If your US customers are private persons, UK VAT applies to your services, and the income contributes to your registration for VAT.

les35
Posts:635
Joined:Wed Aug 06, 2008 3:09 pm

Re: Would US sales contribute to my vat threshold

Postby les35 » Thu Aug 16, 2018 1:49 pm

If your US customers are private persons, UK VAT applies to your services, and the income contributes to your registration for VAT.
Thanks to davebrownvat for highlighting this.

HMRC guidance (not legislation) indicates that the Place of Supply may mean the supplies are excluded from taxable turnover. HMRC Notice 741A, para 9.7 refers. You will need to read this carefully, and perhaps seek further advise on the point.


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