VAT on international royalties

Hello, I send music recordings to record labels (businesses) based in EU and non-EU countries (USA, Italy, Netherlands, Germany, and Sweden) as well as the UK. These labels release the music and generate income from it, some of which they send back to me as royalties. My turnover from royalties from the UK labels is >£90000 but my royalty turnover from non-UK labels is greater than £90,000. Do I need to register from VAT? If so, do I charge VAT to the businesses in non-UK countries? Many thanks.

Hi,

If you receive this income from UK labels then this is a UK supply. If you go over the £90,000 threshold, there will be a requirement to register for VAT.

Who should register for VAT (VAT Notice 700/1)

The royalties received from labels outside the UK are outside the scope of VAT and this will not go towards your taxable turnover. If you have to register for VAT, you will not charge VAT to your business customers outside the UK.

Place of supply of services (VAT Notice 741A)

Thank you.