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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 3725
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am based in the UK and now have to register for VAT as Im

Resolved Question:

I am based in the UK and now have to register for VAT as I'm over the turnover threshold.

My income is derived from Google AdSense (contracted with Google Ireland) and a similar service (except ads in software not ads on websites) based in Israel.

Am I correct in believing that because both companies are outside of the UK, both sets of revenue are outside the scope for VAT (or zero-rated) but I still have to register for VAT?
Submitted: 1 year ago.
Category: UK Tax
Expert:  taxadvisor.uk replied 1 year ago.

Hello, if you have any questions or need further clarification after reading my answer please let me know.

 

Thank you got your question..

 

You have to register for VAT if the value of your UK supplies alone exceeds the registration threshold currently set at £79,000.

 

 

More information on VAT registration implication when you supply goods or services from the UK to other countries is covered here

http://www.hmrc.gov.uk/vat/start/register/when-to-register.htm

 

Adsense income from Isreal would be out of scope of UK VAT. For confirmation look under "What is the place of supply" here

http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm.

 

If you need more information please let me know before you rate my service.

 

I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.

Customer: replied 1 year ago.

Hi there


 


Thanks for the answer and the links ...


 


Just one clarification needed:


 


You said: "You have to register for VAT if the value of your UK supplies alone (my emphasis) exceeds the registration threshold currently set at £79,000."


 


Almost all my income is generated from 2 x non-UK companies. Are they classed as "UK supplies" when I receive those monies into my bank?


 


Or does "UK supplies" mean services rendered/products sold by myself when based in the UK?


 


Many thanks for your quick response.


 


 

Expert:  taxadvisor.uk replied 1 year ago.

Nick, thank you for your reply...

 

You may get monies paid into your bank account in the UK.

 

UK Supplies alone means "If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £79,000, or you expect it to go over that figure in the next 30 days alone, you must register for VAT." Income generated from non-UK based companies are to be excluded in ascertaining whether you have reached the threshold for VAT registration or not.

 

Confirmation of this can be found under "You supply goods or services from the UK to other countries" here

http://www.hmrc.gov.uk/vat/start/register/when-to-register.htm#3

 

I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.



taxadvisor.uk, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 3725
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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