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Hi, I would like to understand the treatment for UK issued Sales Invoices for services to a US domiciled client. I am aware that these are Outside the Scope of UK / EU VAT and no VAT applied on the invoice, but when completing a UK VAT return how should they be accounted for from an Input Tax Recovery Position? Should these be classed as Exempt or Exempt RTR? Many thanks
VAT services to outside EU are outside the scope of VAT and hence no VAT is charged. With outside the scope of VAT, means such services would be left out of your VAT return completely.