registering for VAT as NETP

Hi, I am based is US, providing consultancy services as a self employed person. I have been approached by a UK based VAT registered business to do some consultancy work for them on an ongoing basis. The expected annual sales will be less than £50,000. Do I need to register for UK VAT or can my UK client do a reverse charge through their accounting? I found conflicting advise on your site: Notice 741A (Section 2.6) states that reverse accounting should be used, but Notice 700/1 states all NETPs should be registered. Thank you for clarification.

Hi

If you are based overseas and supplying consultancy services then the reverse charge should be used by your UK business customer to account for the VAT. You can see the guidance here:

Reverse charge

It is not the case that all NETP's are required to be registered for VAT. They would only be required to register for VAT if they are making taxable supplies in the UK which would not be subject to the reverse charge by the UK business customer.

Thank you.