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arrow_back VAT charge to the US for services provided mostly online?

in VAT Q&A Accounting Expert
550 points
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I run a small consultancy firm in the UK and am VAT registered.

I have a new US client and initially will be fulfilling the sessions via Skype, although I plan to visit and carry out some of the work face to face. I understand charging VAT depends where the services are fulfilled?  Does this mean I should be charging VAT for the Skype sessions (as I will be completing from the UK?)

1 Answer

1 vote

The general rule for VAT applies to consulting services performed in the USA or to clients based there.

If the service is being supplied to a consumer (rather than a business) in the USA, it will be subject to UK VAT. This means that the UK company will account for the VAT, which will be charged at the usual UK rate.

If the service is being supplied to a corporation in the USA (rather than a consumer), this is outside the scope of UK VAT therefore UK VAT should not be charged.

Accounting Guru
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