VAT Threshold Contributions for a Sole Trader to EU

[Night Time, My Time]

Hi there – I’m a sole trader (consultant to a software company based in Sweden amongst other roles of a similar nature – mostly sending reports and working remotely with staff over video). I have been trying to determine whether I need to register for VAT or whether I have historically gone over the threshold. However as most of my income is from the US and Sweden, does this income NOT contribute towards the current VAT registration threshold of 85k GBP? I really have been struggling to find an answer. Even my accountant is seeking a specialist to help clarify.

any and all responses welcome and appreciated.

[Night Time, My Time]

And as an addendum to the above; I’ve noticed in a contract that the client has stated that the supplier (myself) is responsible for VAT. Is this common practice and actionable by the client in any way? Even if UK suppliers do not charge VAT to EU clients? 

[VAT-adviser]

VAT services to outside EU are outside the scope of VAT and hence no VAT is charged do not count towards UK VAT threshold. Currently, Sweden and the UK are both in the European Union VAT Area and the rules of where the supply is, guide the VAT treatment in EU. This thread can help you further. https://www.vatforum.co.uk/post?id=10143680

[Night Time, My Time]

thank you so much! Consider my conscience cleared!

to my follow-up note; does this mean the client’s Contract clause about the supplier paying any and all VAT is null/void and irrelevant?

many thanks,

[Author]

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