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Posted Fri, 21 Oct 2022 08:35:52 GMT by McNeillCreativeUK
I run a small business in the UK, selling direct to consumers through my website, around 40% of my orders come from the USA, Canada, Australia and a few other places. I’m wondering if these sales count toward my turnover figure used to calculate whether or not we have reached the VAT threshold? My international orders are ‘worth’ more in terms of the turnover figure as the postage costs to send items are considerably more than for uk orders. If international sales do count then I think I will have just reached the threshold, if they don’t, I won’t be close yet. I would also like to pose the same question for selling to businesses abroad - I believe they do count towards the VAT threshold, but I’m not so sure about direct to consumer orders. Can anyone advise on this? Thanks Stacey
Posted Fri, 21 Oct 2022 14:47:36 GMT by HMRC Admin 10
If the goods are coming from overseas and they are being sent to customers in the UK this will only go towards your VAT turnover if you are the importer of the goods.
If the customer is the importer of the goods and they pay the VAT/DUTY when the goods arrive then you are not technically making a supply in the UK and so you can ignore this turnover for VAT purposes.
If you are selling goods overseas then they will be claased as zero rated exports and so they will go towards your tunrover.
Posted Mon, 24 Oct 2022 09:57:13 GMT by McNeillCreativeUK
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Posted Mon, 24 Oct 2022 11:31:37 GMT by HMRC Admin 10
Yes so if you sell either to individuals or businesses overseas and the goods are exported from the UK then these will be considered zero rated sales and so these will go towards your taxable turnover as although they are zero rated sales they are still taxable supplies.
Please see the guidance below:
The basics
Posted Mon, 24 Oct 2022 11:56:32 GMT by McNeillCreativeUK
Thank you, that’s really helpful. So if I’ve understood correctly, the sales count towards my turnover in terms of meeting the threshold, but I won’t pay VAT on those international order providing they meet the limitations set out for zero rated sales? Thanks again, Stacey
Posted Mon, 24 Oct 2022 14:08:57 GMT by HMRC Admin 17

Yes that is correct.

Thank you.
Posted Thu, 01 Dec 2022 18:29:07 GMT by CLOUTT Vince
I sell consulting services completely outside the UK do these need to count towards the VAT threshold?
Posted Mon, 05 Dec 2022 15:32:25 GMT by HMRC Admin 2

If your services are deemed as outside the scope of VAT, this will not count to your VAT turnover.

Thank you.

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