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Posted Fri, 29 Mar 2024 10:58:43 GMT by aj williamson
I'm a sole trader whose taxable domestic turnover is below the 85,000 VAT threshold. However, when including payments from foreign, VAT-exempt clients, my turnover crosses the threshold. How do I account for this when completing my self-assessment to avoid inadvertently being flagged as VAT eligible? I initially thought I would have to post my foreign turnover separately in the foreign section of self-assessment, but having read this forum, it appears this section is only relevant when the foreign income has been taxed at source and you are seeking relief. My foreign income has not yet been taxed and I must pay UK tax on this, but I still wish to identify it as international income in order to flag it as VAT exempt. How must I do this?
Posted Fri, 19 Apr 2024 09:57:47 GMT by HMRC Admin 20
Hi aj williamson,
The turnover relating to overseas would be classed in VAT terms as Outside The Scope of VAT.
This turnover would not go towards the VAT turnover when considering if the business needs to register for VAT as it is deemed Outside The Scope of VAT
The VAT exempt foreign income can go on the box as other business income and not part of the turnover.
Thank you.




 

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