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Posted Fri, 09 Aug 2024 15:05:23 GMT by Jamesf76
My company is a B2B software provider and we use UK resellers that resell our software to companies outside of the UK. Should we charge the UK reseller VAT, or as the end customer that will be using the software is outside the UK, is the 'supply of service' classified as outside the UK and therefore not subject to VAT?
Posted Mon, 12 Aug 2024 11:19:01 GMT by HMRC Admin 21 Response
Hi Jamesf76,
If your supply is to the UK company then this transaction will attract VAT as your customer is in the UK.
However if your supply is to the overseas company and the UK company is only acting as an agent and charging you a commission for their services then your supply would normally be Outside The Scope of VAT based on the Place of Supply Rules.
Please see the links below:
6. The place of supply rules for services
22. Supplies made by or through agents
23. Invoicing arrangement for supplies made by or through agents.
Thank you.

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