The first thing to realise about VAT for non UK residents is that whatever you do, getting professional advice is always recommended.

VAT for non UK residents may differ from the standard rate depending on the individual circumstances.

VAT is the sales tax in the UK and ordinarily charged on goods and services, and in most cases is charged at 20% but VAT for non UK residents may differ.

There are, however, exceptions, as not all businesses have to be VAT registered.

Some products or services are exempt or charged at a different rate and there can be some special circumstances, whereby a business is registered and charges a different rate.

The options may also vary depending on your company and where it is registered.

As such the VAT for non UK residents may differ depending on your circumstances.

If you are a non UK resident and have a UK registered company, then VAT registration is optional.

If your turnover is under the current threshold (which is £85,000 – 2019), then you do not have to regsiter.

For larger turnover (over £85,000) then VAT registration is mandatory.

If you are registered then the standard rate is 20%

However in this example the business charges VAT but can then claim back any paid VAT.

Any balance due needs to be paid to the UK tax collectors, HMRC (Her Majesty’s Revenue & Customs)

If your company is registered outside of the UK, then registration is mandatory.

However the way it is calculated will vary from that of a UK registered business.

In these circumstances you will need to charge a flat rate VAT percentage, which is lower than the 20% but takes into account you will not claim back any VAT you will have paid.

As you can see, VAT For Non UK Residents can be quite a complex subject.

So if you intend to sell goods or services into the UK, then make sure you seek specialist and expert advice.

As a specialist banking intermediary we are not tax or VAT specialists, but we do have a partnering business who are VAT experts – call 44 20 32 86 39 29 or Contact Us

VAT For Non UK Residents