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Posted Thu, 06 Jul 2023 01:30:35 GMT by
I’m a soletrader who is contracting software engineering services to a company based in the USA and a non profit, also based in the USA. I haven't ever contracted for anyone else. My total earnings within a twelve month period will pass £85k on my next invoice. My understanding is that because these two companies are US based, I neither have to register for VAT, or charge VAT to my customers. Am I correct?
Posted Thu, 13 Jul 2023 08:47:33 GMT by HMRC Admin 20 Response
Hi Fran S,

If your business customer is based outside the UK then your supply of engineering services are Outside The Scope Of VAT and hence is not taxable turnover.
You would therefore not be required to register for VAT or charge VAT.
Please see the guidance below:
6. The place of supply rules for services
3. Working out whether you need to register

Thank you.

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