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Posted Thu, 12 Oct 2023 20:32:16 GMT by
Hello, We are a UK based start up company that design and provide software. Our client is in the USA ,therefore we will not charge VAT. We have no UK clients. However, we need to purchase hardware in order to design the software and pay freelance developer invoices in the UK, thus we will be charged VAT on these purchases. Is it possible to reclaim the VAT?I If so, how? If not all of it, can it be reclaimed partially? Please can someone offer some advise? Many Thanks Anna
Posted Tue, 17 Oct 2023 11:28:38 GMT by HMRC Admin 10 Response
Hello.
Please refer to notice 700/1 section 2.9 if you are a UK business and only make supplies abroad.
Basic principles 
This advises a UK business may still register and recover VAT where those supplies would be taxable if made in the UK.
Input tax recovery would be via the VAT returns and subject to the normal input tax rules in notice 700 sections 10 to 13
​​​​​​​Introduction to input tax
 

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