question about VAT

[RobM]

This is probably a simple question but I can't wrap my head around it - would appreciate input from people in the know.
I run a company of 12 people including 2 partners and I'm thinking about actually becoming a 'proper' registrar. We are outside UK and vat registered (ie we don't pay vat to nominet on purchases). If someone registers a domain with us will they be liable for vat? I don't want to bring it up at the next meeting and look like a chump for not knowing.

 

[Reddy]

Basically, if you are VAT registered you need to charge VAT on goods and services which you provide (other than those which are exempt). This VAT is then paid to HMRC less any VAT you pay on purchases. You do not need to charge VAT on services sold to non-EU customers.

David

 

[monaghan]

If you are in the EU you need to charge VAT on customers in the EU, if you are outside the EU, then you would charge taxes according to the local tax rules.

Before undertaking anything that you are unsure of I would suggest speaking to your accountant rather than making financial decisions on replies to forum posts!

 

[martin-s]

This is complex Rob. You will need to become VAT registered to sell into the EC even if you are outside of the EC. You then also need to be able to handle reverse charging where customers have supplied you with a valid VAT number.

Read this:
http://customs.hmrc.gov.uk/channels...ntent&propertyType=document&id=HMCE_CL_001460

 

[RobM]

Thanks for all your replies. Obviously I will speak to the accountant when we have our next meeting - was just working out whether it's worth bringing up I'm more technical than financial. Our company is already VAT registered but we're based in Malta (EU). I'll speak to him - thanks guys.