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Posted Fri, 15 Dec 2023 23:55:56 GMT by
I would be extremely grateful if you could help me understand whether I need to register for VAT in the UK. I am resident outside of the UK. I intend to set up my own business where I am resident, as a sole trader, providing specialist technical consulting services. My clients will ordinarily be located in my country of residence. However, a VAT-registered UK company has requested that I provide some services, the total value of which will remain below the UK threshold for VAT registration. From what I have read in the HMRC help pages, I believe that I should ask my UK client to account for VAT using the reverse charge procedure, and that this means I do not then need to register my own business in the UK for VAT. Is this correct? On a further point, if I receive the fees into a UK bank account in order to save my client currency exchange fees, does this alter my position with respect to the need (or otherwise) to register for VAT? Thank you in advance for any help you can provide. I thought I had found a clear answer in VAT notice 741A (Section 2.6, "If you only make supplies of services in the UK to which the reverse charge does apply you are not entitled to register for VAT in the UK") but then on reading 700/1, it seemed to state that I must register for VAT as an NETP, without any exceptions.
Posted Fri, 22 Dec 2023 08:06:50 GMT by HMRC Admin 25
Hi AntonyNZ,
If you are based overseas and provide these services to a business in the UK then the VAT will be treated on the reverse charge procedure and there will be no requirement for you to register.
The only scenario where you would need to register for VAT is if you have a UK esrtablishement and therefore belong in the UK for VAT purposes.
If you belong overseas then there would be no requirement and no ability to register for VAT in the UK.
Thank you. 
 
Posted Fri, 22 Dec 2023 08:37:41 GMT by
@HMRC Admin 25, thank you for the clear and helpful reply, much appreciated.

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