Registering for VAT when selling services overseas

Hi, I am confused about if I need to register for VAT. I am sole trader living in the UK and I sell design services to one company based in Argentina. I am now over the VAT threshold. 1. Do I need to register for VAT? 2. If I do register for VAT, should I choose that I am a "UK established overseas exporter" in the screen "Why do you want to register the company for VAT"? Thanks, Louise

Depends what you mean by "design services"? https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a covers the place of supply of services. Are these design services the design of a website, or interior design, or designing a health and safety at work plan, etc? Generally supply of services to a non-UK customer is outside the scope of VAT, that means turnover does not count towards VAT registration threshold in the UK, so you are probably not needing to register for VAT, You would not be a "UK established overseas exporter" as that refers to the movement of goods across borders, whereas you are supplying services across borders, goods and services have different rules in VAT.

Hi,

If you are a sole trader in the UK and you provide design services to a company based overseas then these services would be outside the scope of VAT.
You would therefore not be required to register for VAT although you could register on a voluntary basis.

You can see the guidance below,specifically section 2.9.

Who should register for VAT (VAT Notice 700/1)

If you choose to register for VAT then there will be an option to register on the basis of making supplies overseas.

The only basis on which there would be a requirement to register for VAT would be if the design services are related to a specific property in the UK and the registration threshold of £85K is breached.

Please see the guidance below:

Land related services

Thank you.