Non resident of UK selling services to Uk based clients

Hi, If a non-resident of the UK is self employed and offers services to a UK based client, must they be VAT registered in the UK despite being registered for the equivalent in the resident country I.e. IVA in Spain? If so, is there any way to set off the VAT paid in the UK against the equivalent paid in the country of residence similar to the DTA for income tax?

Hi.
There will be a requirement for an overseas person to register for VAT in the UK if they make supplies which are deemed by the Place of Supply Rules to be in the UK.
Please see the rules regarding the Place of Supply of Services.:
The place of supply rules for services
If the overseas person is making supplies of this kind in the UK then the overseas person would need to register for VAT immediately upon the first sale being provided.
Please see the guidance below:
Working out whether you need to register
Non-established taxable persons — basic information

Thank you. So to clarify. B2C services provided by an overseas business would not be subject to UK VAT as the place of supply is the country the business providing services belongs in (i.e. Spain) However B2B services would be liable to UK VAT? And if the UK business is VAT registered then teh reverse charge would apply? Is this correct? Many thanks

Hi.
For B to C services then generally the Place of Supply would be the supplier's country and for B to B services then tthey would be subject to the reverse charge by the UK business customer.
However there are exeptions to these general rules .
You would need to carefully read the rules for these exeptions in sections 7-10 of the guidance below:
Land related services
These rules can be complex and so if you need further help please contact our Helpline as below:
VAT: general enquiries

Thank you. I have a couple of potential B2B clients who are not VAT registered. So, can I still apply the reverse charge mechanism when I invoice them? Or, do I need to charge UK VAT on their invoices? I'm also assuming hat all sole traders are classed as B2B?

Hi The UK business customer does not need to be VAT registered in order for the reverse charge procedure to be used. For the reverse charge to be applicable the customer needs to be in business. This could be as a limited company or as a sole trader for example. When providing services from overseas it is always beneficial to get some evidence to show that the UK customer is in business and receiving your supply for a business purpose. If the parent company supplies these kind of services then the UK business customer would need to account for the VAT on the reverse charge procedure. Thank you

Perfect, thank you so much for all the information.

So most of my clients are B2B and the reverse charge will apply and the remainder are B2C so not subject to UK VAT as the place of suply will me my resident country. Do I still need to register for UK VAT?

Hi CS171717,
You will only need to register for VAT if you are making supplies of goods or services which are deemed by the Place of Supply Rules to be taking place in the UK.
What are the nature of the services you are supplying please?
Thank you. 

I would be supplying bookeeping services from Spain to B2B customers and some B2C customers also (private individuals requiring assistance with preparation of the tax returns from employment/property income.

Hi,

The B to B and B to C supplies would both be outside the scope of VAT. You can see the guidance here:

Reverse charge

The place of supply rules for services

B2C services of a professional, technical, financial, intellectual or other intangible nature supplied to customers outside the UK

Thank you

Thank you, so I would still need to register for VAT as a NETP though all services would be outside the scope of VAT ?

Hi , No if all of the supplies are Outside The Scope of VAT then there is no requirement to register for UK VAT. Thank you .