Digital services - VAT charge and registration

There is non-UK entity in Ireland that performs our billing to all UK based individuals. The nature of the service is we receive consideration monthly from healthcare professionals to advertise their services on the directory. We do not get involved between the healthcare professional and their clients. Currently we do not charge any VAT to VAT registered professionals for their subscription fees, treating them as a business. For all other non-registered users, we charge and remit VAT but I wanted to confirm my understanding that the VAT registration and VAT charge is a very conservative view and if all healthcare professionals whether VAT registered or not can be deemed a business for B2B transaction rather than a B2C transaction. Since for all these healthcare professionals we have to get their license and professional qualification before admitting them on the directory. Where is the grey line between classifying a customers as a business and as a consumer. Will the licenses and professional qualification be sufficient to conclude all individuals we receive monthly subscriptions from UK customers are businesses and thus reverse charge mechanism applies and we can deregister for VAT and not have to charge VAT to UK customers?

Hi,
Please refer to section 2.4  Place of supply of services (VAT Notice 741A) 2. Background to place of supply of services and also please refer to this guidance
VAT Place of Supply of Services VATPOSS01320 - Introduction: Supplies to business and non-business customers
Thank you.

Thank you for the links to the guidances. My query is more on whether mental health professionals without a website and VAT registration can be viewed as a business using commercial evidence such as their professional qualification, professional licenses and the fact that they are placing an advert on a directory. Is that acceptable evidence for all UK based therapists to be deemed a business and thus a B2B transaction and not a B2C transaction?

Hi Hiren.k3,
If the supply is for business purposes it would be deemed as B2B please refer to section 6.3 
9. Services supplied ‘where performed.
Thank you.

In the case where sales of these to businesses exceed the threshold of GBP 90,000 in a 12 month period, would we still need to register for VAT and file nil returns and then we wouldn't have to remit any VAT as the reverse charge mechanism will apply? Is my understanding correct or is it the case that since all sales are to businesses in the UK and the revers charge applies that we would not need to register for VAT?

Hi ,
 

Hi. If you have determined that the supply is covered by the reverse charge as per notice 741a section 5 https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#sec5 then we deem the customers to be making the supply and they should account for any VAT due using the 'reverse charge' procedure. Where the customer accounts for the VAT using the reverse charge, these supplies do not count as your taxable supplies in the UK. Please note if you are making no taxable supplies in the UK (as subject to reverse charge in this case) and also have no business or fixed establishment in the UK, there is no requirement or entitlement for you to register for VAT in the UK.