HMRC Admin 8 Response
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VAT Threshold and providing services for overseas businesses
I have not yet met the VAT Threshold but I am getting close. Recently a US company asked me to provide services for them. It is my understanding that this would be Out Of Scope for UK VAT. Does that mean it does not count towards the VAT Threshold? If this is the case, how would I deal with this in my accounts so that the threshold does not get triggered? My accounting software FreeAgent does not allow me to mark sales as Out of Scope when I am not VAT Registered.