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Generally UK VAT is only charged where the client is based in the UK or to private clients who are based in other EU states; private clients outside the EU are usually ‘outside scope’ supplies; and business clients in EU are also outside scope of VAT.
Where legal services are deemed to relate to land, the place of supply is where the relevant land is situated irrespective of where the client himself belongs. This applies whether or not the client is a private or business client. But, how do we know when our services actually relate to land? Is there any particular certainty around this definition?
Unfortunately, there is considerable uncertainty in the way the rule should be applied. You may need to contact a VAT expert to deal with your case.
Long or short term hire? Read VAT notice 742 para 5
In summary, the supply of land is ZR, rental of sports facilities is SR, hence treat as SR unless choose to tax long term (ie blocks of more then 10) hire as supply of land. ZR.
Please see my responses to your questions:
VAT GROUP ON THE INVOICES OF VARIOUS COMPANIES
The invoicing should not be affected by the VAT group registration. The only change on the invoices is that all the group members should quote the group VAT registration number.IS VAT EVER DUE ON SUPPLIES BETWEEN GROUP MEMBERS?
In most cases supplies of goods or services made between members of the same VAT group are disregarded for VAT purposes.HOW IS INPUT TAX RECOVERY TREATED WITHIN VAT GROUPS? WHAT HAPPENS IF THE GROUP IS PARTLY EXEMPT?
Input tax recovery is determined in accordance with the use of the group, as a whole, of the goods and services received by each individual member. As a group is treated as a single taxable person most of the partial exemption rules apply to a VAT group in the same way as they would to a stand-alone business.
Input tax incurred by all the group members can be deducted to the extent that it is attributable to supplies made to persons outside the group which carry the right to deduct input tax.WHO IS LIABLE FOR THE DEBTS, OBLIGATIONS AND VAT ERRORS OF THE VAT GROUP?
Since a VAT group is treated as a single taxable person, the limit for voluntary disclosures of errors on past VAT returns applies to the group as a whole. If you fail to make a voluntary disclosure of misdeclarations you may render the group liable to a misdeclaration penalty as well as interest. The group is jointly and severally liable.The general rules for companies in VAT groups are that:
– the entities involved are body corporates, under “common control”
– the entities must be “established” or have a “place of establishment” in the UKNote as you pointed out, and for the purposes of Group VAT regisration Isle of Man is treated as part of the UK and hence the mix of Isle of Man and UK is not an issue.
This is worth a read if you are considering a group vat registration: https://www.gov.uk/government/publications/vat-notice-7002-group-and-divisional-registration/vat-notice-7002-group-and-divisional-registration–2
Under the provisions of Item 9 Group 7 Schedule 9 VAT Act 1994, VAT exemption applies to the supply of welfare services by a charity, a state-regulated private welfare institution (or agency), or a public body. Note 8 explains that “state regulated” means “approved, licensed, registered or exempted from registration by any Minister or other authority…”. Welfare services with respect to VAT includes are services which are directly connected with the care or protection of children and young persons. Hence childcare services provided by a licenced entity are VAT exempt. If this is the only service you provide, then you dont need to register for VAT.
Once your supply is treated as exempt, you lose your ability to reclaim input VAT costs relating to that supply. But, if you are a charity you may not have to pay VAT, or may be entitled to a reduced rate VAT, on certain goods and services that you purchase.
There are 4 main ways to deal with VAT on fuel.
Claim 100% of input tax: Only if you use the the car 100% business all the time eg a taxi firm. It is virtually impossible to have a car that has no private usage.
Claim 100% of input tax and pay the correct fuel scale charge: for your vehicle You can work out your fuel scale charge herehttps://www.gov.uk/fuel-scale-charge. This method can work out expensive unless the car does a lot of mileage and has low CO2 emissions.
Claim VAT just on business mileage: You will need to keep a detailed business mileage log and can claim 45p per mile in your accounts. This will allow you to claim back the VAT on fuel element of this rate using the advisory fuel rates, published here. You must make sure that you retain VAT receipts to show fuel purchased of at least the amount that you are reclaiming.
Claim no VAT at all: if you choose this option then you need to apply this across all the vehicles in your business, including commercial vehicles
The Amazon FBA in the UK means you have a business establishment here, and therefore need to register for VAT.
If you register in your own country, then you would still need to register in the UK. You will only pay VAT once on each supply. There are some solutions for this; e.g: https://www.crossbordervat.com/
Firstly you must register for VAT with HM Revenue and Customs (HMRC) if your business’ VAT TAXABLE turnover is more than £85,000.
Residential lettings are exempt from VAT, so NOT included in the taxable turnover. Genuine disbursements are outside the scope of VAT hence also not in the taxable turnover number. Hence the only number that matters is the £50k which is less than £85k hence no obligation to register.
However you may want to register voluntarily if the customers are in business, so that you recover input tax subject to partial exemption rules. Note expenses recharged to customers are not disbursements, and so count towards taxable turnover.
I guess the customer is based in EU.
Supplies of goods to a customer registered for VAT in another EU country can be zero-rated provided certain conditions are met. These include obtaining the customer’s VAT registration number and showing it on the VAT invoice. The customer then accounts for VAT at the appropriate rate on the goods in the EU country of destination. If the conditions cannot be met, VAT must be charged in
the country of origin at the rate applicable to the goods in that country.VAT must also be charged on supplies of goods to non-registered customers in other EU Member States. Where, however, the supplier is also responsible for the delivery of the goods, once the value of such ‘distance’ sales to any particular EU country exceeds an annual threshold set by that country, the supplier is automatically liable to register for VAT in that other country. VAT on any further sales is then due in the EU country of destination.
As long as you have verified that their EU VAT number is valid on the VIES system, and retain evidence that the goods physically left the UK then there is no issue with crediting and issuing a revised invoice.
The revised invoice should include a narrative referring to Article 138 of the EU VAT Directive.
(i) VAT ON SERVICES TO EU
The VAT rules are that place of taxation (for VAT purposes) is determined by (i) where the services are supplied and (ii) status of the customer receiving the service i.e. whether a business or consumer.The place of supply for business to business transactions (B2B) is the place where the business customer ‘belongs’. Hence services to EU businesses, the place of supply is where the business customer ‘belongs’, hence VAT should not be charged to all EU businesses.
The place of supply for business to consumer transactions (B2C) is the place where the supplier ‘belongs’ irrespective of the location of their customer. Hence the place of supply for services to EU customers is UK and VAT should be applied regardless of the location of the customer. Please note B2B (Business-to-business) means commercial transactions between businesses and B2C (business-to-consumer) means transactions between a business to natural persons/private individuals. Also note services to EU businesses that are not VAT registered are counted as a consumer.
You can look at the above in detail from these links: https://www.taxadvisermagazine.com/article/location-location & https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a
The link https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#sec12 – paragraph 12.2 list services that are excluded from the above general rules. These services when provided by a UK business to any customer in EU, VAT should NOT be charged.
Therefore, my view is that if the client is a private individual/natural person and services is not covered in the exemptions list link above, you should already be charging VAT irrespective of the location of the clients.
(ii) VAT ON SERVICES TO OUTISDE EU
VAT services to outside EU are outside the scope of VAT and hence no VAT is charged. However, input VAT relating to these services is recoverable. There is no B2B or B2C with respect to outside EU services.If you’re left land or property in a will
If you get land or property under the terms of a will, there’s no need to tell HMRC and you won’t pay SDLT. This applies even if you take on an outstanding mortgage on the property on the date the person died. This is on condition that no other consideration is given.You’re given property as a gift
If you get property as a gift you won’t pay SDLT as long as there’s no outstanding mortgage on it. But if you take over some or all of an existing mortgage, you’ll pay SDLT if the value of the mortgage is over the SDLT threshold.Firstly f your taxable turnover exceeds £85k in any 12 month period to need to register for VAT. If you have already breached this then it is to late.
Most businesses restricted their turnover to remain outside the VAT system because they expected VAT registration to negatively affect their profit, or their competitiveness if the cost was passed on to their customers, with businesses with a higher proportion of business-to-consumer sales and low input costs worried about a substantial financial impact.
However i read about some academic research that found that restricting business activity often involved considerable effort and monitoring of turnover, and turning down work could impact on a business’ reputation, hence may not always be the best option.
As you may or may not be aware, the government are looking to reduce the VAT threshold anyway, so using my crystal ball, you will required to register in the near future regardless in all likelihood.
Creating one company for each day of the week will obviously not work as HMRC will look at this as artifical separation of business -see here: http://vatforum.co.uk/viewtopic.php?id=111
The VAT consequences for educational services/goods provided by an eligible body exempt and any ‘closely related’ goods or services provided are exempt. However ales of other goods or services are standard rated.
For a non-eligible body, the education, and other goods and services provided, is standard rated. If private tuition is provided by a sole proprietor or partner, the tuition carried out is exempt. However tuition that employees or other helpers carry out is standard-rated.
Teaching of English as a foreign Language (TEFL) providers are different, and are not subject to the non-profit test. TEFL is an exempt supply for VAT purposes in the UK. All supplies of tuition in English as a foreign language (TEFL / EFL) by commercial providers are exempt under item 1 of Group 6 of Schedule 9 of the VAT Act 1994 (see VATEDU15000). The exemption applies because any supplier of EFL tuition is an ELIGIBLE BODY falling within the description of Note (1)(f) of Group 6.
But, if the courses are only partly TEFL, you will need to carry out an apportionment.
You are at risk of artificial separation unless your business are ensure the business are as separate as possible – financially, economically and organisationally. Please read more on http://vatforum.co.uk/viewtopic.php?id=41
You are at risk of artificial separation unless your business are ensure the business are as separate as possible – financially, economically and organisationally. Please read more on http://vatforum.co.uk/viewtopic.php?id=41
