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Posted Tue, 10 Oct 2023 05:56:10 GMT by
Hello, We are a partnership and provide translation services to UK, EU and non-UK clients (B2B) and also have a small number of UK, EU and non-UK private clients (B2C). It's very likely that our turnover will soon exceed the VAT registration threshold of £85k. However, approximately half of our turnover is from the services we provide to our EU and non-UK clients, which we understand as being out of scope of VAT. Does this mean that we only need to register for VAT when our turnover from our UK-based clients exceeds £85k? Even if our total turnover exceeds £85k? Thank you.
Posted Wed, 11 Oct 2023 11:21:21 GMT by
Following with interest as I'm in the same boat. I've been told by an accountant that I will need to apply to HMRC for an exemption, but I'm curious to know whether this is the case or not.
Posted Mon, 16 Oct 2023 15:45:04 GMT by HMRC Admin 19 Response
Hi,

if you are a UK based company then the income that is outside the scope of UK VAT would not count towards your threshold for registering.  

If you are a Non UK company there is no threshold and you would need to register regardless of your turnover. You can see guidance here:

Non-established-taxable-persons (NETPs) — basic information

Thank you.
Posted Tue, 17 Oct 2023 10:03:04 GMT by HMRC Admin 8 Response
Hi,
For guidance regarding applying for an exemption from registration please refer to notice 700/1 section 3.11 
Please note that supplies which are outside the scope due to place of supply rules are not the same as zero-rated supplies to which an exemption from registration normally applies.
Translation services would not normally be zero-rated supplies.
Section 2.4 provides examples of zero-rated supplies
 Thank you
Posted Fri, 20 Oct 2023 05:56:49 GMT by
Thank you very much for confirming that we have understood correctly.

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