VAT Help - Digital Artwork

Hello, I am a Digital Artist based in the UK - all of my work is manually sent as a PDF to my clients which they then print off locally - so it is not deemed as a digital service. The majority of my clients are based in the USA, and I am just wondering if my US sales count towards the UK VAT Threshold? Or is it just the UK and EU sales? Thanks for your help.

Hi,

The place of supply of the service determines whether this is deemed as a supply in the UK and hence whether you would need to consider these supplies as part of your taxable turnover in the UK. The general rule for services to individuals deems the supply to take place where the supplier belongs and so supplies to your UK customers will be part of your UK turnover. You can see guidance here:

The place of supply rules for services

However if you are supplying these services to the EU and the USA then please see the guidance here:

B2C services of a professional, technical, financial, intellectual or other intangible nature supplied to customers outside the UK

Thank you.

Hello, Thanks for getting back to me. I am selling one time access to one of my designs (intellectual property) for tattoo use (which I manually email across a copy of) - to the UK, EU and USA. So from what you are saying, the sales in the EU and USA count towards my taxable turnover, however they do not count towards my VAT Threshold? Therefore, I will be below VAT Threshold and I do not need to register for UK VAT as my UK sales are below £85,000. Is that correct? Thanks.

Hi Josh Duke,
As the supplies would be deemed as Outside The Scope of VAT they don't form part of your taxable turnover for VAT Registration purposes.
So there would be no requirement to register for VAT if your UK turnover remains below the registration threshold.
Thank you.