UK LLP - Are we still obligated to pay VAT?

[Novice]

Hello

We've been looking into UK LLP. Founder is from Romania.

Do we have to pay VAT? Is there a specific Revenue after which we start paying VAT?

Is there a legal way or structure that doesn't require collecting VAT? Customers are from Romania Mainly.

Selling Services like Hosting, Domains and licenses related to hosting.

Any help would be highly appreciated.

Best

 

[uplana]

You are obligated to charge VAT if it is B2C if you sell B2B you can avoid VAT if you have the other parties VAT number / company registration number.

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[Novice]

uplana said:
You are obligated to charge VAT if it is B2C if you sell B2B you can avoid VAT if you have the other parties VAT number / company registration number.
Click to expand...

May I Know how can I avoid charging VAT for businesses if I have their number?

Does that mean they will have to pay VAT for their purchases on their own to their countries?

 

[fshore]

Novice said:
Hello

We've been looking into UK LLP. Founder is from Romania.

Do we have to pay VAT? Is there a specific Revenue after which we start paying VAT?

Is there a legal way or structure that doesn't require collecting VAT? Customers are from Romania Mainly.

Selling Services like Hosting, Domains and licenses related to hosting.

Any help would be highly appreciated.

Best
Click to expand...

It depends where the services are performed. If you are not performing the services from the UK then you are not likely liable to charge UK vat.
You should check with a UK accountant about your specific situation.

Note that if you do register for UK vat you actual (Romanian?) address will appear on the UK vat website. You can't register a UK address as your address unless you have an office with staff there.

 

[sujoe]

Take a look at VAT for Digital Services under the MOSS scheme. VAT is paid at the consumption country, in your case it would be Romania.
https://europa.eu/youreurope/busine...ervices-moss-scheme/index_en.htm#outsidetheeu

 

[uplana]

Novice said:
May I Know how can I avoid charging VAT for businesses if I have their number?

Does that mean they will have to pay VAT for their purchases on their own to their countries?
Click to expand...

No they will not have to pay you VAT, they have to deal with their countries VAT office.

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[sujoe]

uplana said:
No they will not have to pay you VAT, they have to deal with their countries VAT office.
Click to expand...

The non-eu vendor is still responsible to collect the VAT on behalf of the customer if it is a B2C sale, the rate would be the rate of the customer's country VAT rate. If it is a B2B sale and the customer has a valid VAT number (verifiable through VIES), then a reverse-charge mechanism could be done, so no need to collect VAT.

 

[uplana]

sujoe said:
The non-eu vendor is still responsible to collect the VAT on behalf of the customer if it is a B2C sale, t
Click to expand...

You need to read what I posted, for B2B you don't have to charge VAT for B2C you have!!!

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[sujoe]

oh, you are right, lol. I did miss the first message.