Do EU / USA sales count towards £85k threshold

Hi guys I own an online art store that sells on the platform Etsy. My question is when for example I sell an item in USA, the canvas is printed and delivered by my manufacturer who is based in the USA. So they ship direct to the customer. Should this sale count towards the UK VAT threshold? Just to clarify the item is made in the USA and never touches UK shores? Thanks in advance Amanda

Hi AmandaPorter,

If the goods have never been in the UK then your supply is Outside The Scope Of VAT and so these sales will not go towards your taxable turnover for VAT Registration purposes.

Thank you.

 

Thanks @hmrc Admin 20. Is there anyone I can speak to at HMRC to confirm this or shall I take the above reply as the information I need. Any assistance would be greatly appreciated

Hi,

No, there is no one else you would need to speak to. If you make supplies of goods that are never in the UK then these are not UK supplies and so would not count towards the taxable turnover.

You can see guidance here:

Working out whether you need to register

Thank you.