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Posted Sun, 19 Feb 2023 11:52:53 GMT by springo
Should Charge VAT for my remote IT consultancy service after reaching the threshold. I am currently Self employed and providing IT consultancy service to the client(The client is based in Hong Kong) via a UK company. Example , i provide service on Jan 23, I will issue invoice to the UK company on Feb 23 , they will pay me with USD in the Mar 23. When i get the payment andII will convert it to sterling. 1.)I want to know if i should register VAT if the turnover is reaching the threshold. 2.) If case i have to register for VAT , which period exchange rate should I use for calculating the VAT in the invoice? And if there is any tax implication later when I convert it to sterling with a different rate?
Posted Mon, 20 Feb 2023 15:07:05 GMT by HMRC Admin 17

You will need to decide where you customer is if it is a UK to UK supply section 3 :

Place of supply of services (VAT Notice 741A)  .

With regards invoicing and the echane rates please refer to section 14 and section 7.6 of this notice :

VAT guide (VAT Notice 700)  .

Thank you.
Posted Mon, 20 Feb 2023 15:42:39 GMT by springo
As I mention in the Post , my situation is not that strict forward as there is a UK company in between the actual client(HK company) that I provide the service. I am dealing the quotation , invoice and payment with the UK company ( you can say agent) , but the actual service is carrying out remotely to the client (HK company) in Hong Kong. So for this kind of situation , how is the service of supply is classified .
Posted Mon, 20 Feb 2023 17:01:04 GMT by HMRC Admin 18

You will need to determine that, unfortunately we cannot decide for you, please refer to section 3 of the link below:

Place of supply of services (VAT Notice 741A)

Thank you.

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