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Posted Fri, 06 Sep 2024 18:57:07 GMT by anna11111
Hi, I am self employed and exclusively working for one single overseas client. I have not yet reached the VAT threshold but, if/when I do, should I register even though that income is solely from outside the UK? If I do register, would I need to keep declaring that my income is not from the UK and therefore I do not need to pay VAT on it? Thank you.
Posted Thu, 12 Sep 2024 11:11:26 GMT by Jay Cooke
Place of supply of services is (default rule) where the client is based. You don;t state whether your client is a business or a consumer but assuming it is a business/in business, then it would your sales are outside the scope f UK VAT and the customer accounts for VAT in their own Country. Outside the scope sales do not count towards the VAT registration threshold, so you could turnover £100k of sales to your overseas business client and not trigger a VAT registration, you can voluntarily register for VAT if you want to reclaim input tax incurred in the UK. There are some exceptions to the default rule, services relating to land or where performed services may see you having to register for VAT in the Country where your client is based (you don't state where your client is located in the world) and so you may need to read the HMRC guidance here https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a to ensure you are aware of the various rules relating to land, where performed type services.
Posted Thu, 12 Sep 2024 14:41:37 GMT by HMRC Admin 13 Response
Hi anna11111,
If you are providing consultancy services to an overseas client then this will Outside The Scope of UK VAT and will not go towards your taxable turnover for VAT registration purposes.
You can choose to register voluntarily but once registered you would not need to inform us that you are not charging VAT and you would just declare the VAT on yout outputs as nil.
Please see the guidance at:  Who should register for VAT (VAT Notice 700/1) and specifically section 2.9. 
Thank you
Posted Fri, 13 Sep 2024 07:30:59 GMT by anna11111
Thank you both for helpful responses

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