Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Mon, 23 Dec 2024 16:37:05 GMT by Lorna McGachie
I'm a freelance copywriter who provides B2B services to a couple of translation agencies within the EU (Italy and Estonia). I'm getting close to the 90k VAT registration threshold, however approximately 60k of my income comes from my EU customers. I've received conflicting information from HMRC, and my accountant seems to think the registration threshold is based on all my income, regardless of where it comes from. I was under the impression that the money I receive from my EU clients falls 'out of scope' and won't count towards my threshold earnings. Is this right? Secondly, do I still need to apply for an exemption should I breach the 90k threshold? I assume yet to avoid unnecessary penalties. Thanks in advance.
Posted Fri, 10 Jan 2025 13:33:45 GMT by HMRC Admin 20 Response
Hi,
If you are providing these services to business customers overseas then these services should be Outside The Scope Of UK VAT.
Please see the guidance below:
Place of supply of services (VAT Notice 741A) 6. The place of supply rules for services
This should therefore not form part of your taxable turnover and you would not need to apply for an exemption from VAT registration as this would only
apply if you were making zero rated supplies over the VAT threshold.
Thank you.

You must be signed in to post in this forum.