Why do you charge VAT to International Customers?
VAT, Customs & Excise – HMRC Reference: Notice 741A (January 2010)
For international customers, it may seem unusual to be charged VAT. However, when providing services that are directly related to land or property in the UK, such as our virtual office services, the UK’s VAT laws require that VAT is charged based on the location of the property. This rule applies regardless of the customer’s location, meaning that VAT is still due even if you’re based outside the UK.
The VAT treatment for land-related services is covered under HMRC Notice 741A, which specifies that the “place of supply” for land-related services is the location of the land or property itself. Consequently, since our virtual office services provide a UK-based business address, VAT must be applied according to UK regulations.
As of now, the VAT rate in the UK is 20%. The good news for international customers is that, in many cases, this VAT may be fully reclaimable in your own country. You may wish to consult with a tax advisor or VAT expert to understand how you can reclaim VAT based on your business’s specific circumstances and local tax regulations.
By adhering to these VAT guidelines, The Hoxton Mix ensures compliance with UK tax laws, providing transparent and consistent services to all customers, regardless of location.
For international customers, it may seem unusual to be charged VAT. However, when providing services that are directly related to land or property in the UK, such as our virtual office services, the UK’s VAT laws require that VAT is charged based on the location of the property. This rule applies regardless of the customer’s location, meaning that VAT is still due even if you’re based outside the UK.
The VAT treatment for land-related services is covered under HMRC Notice 741A, which specifies that the “place of supply” for land-related services is the location of the land or property itself. Consequently, since our virtual office services provide a UK-based business address, VAT must be applied according to UK regulations.
As of now, the VAT rate in the UK is 20%. The good news for international customers is that, in many cases, this VAT may be fully reclaimable in your own country. You may wish to consult with a tax advisor or VAT expert to understand how you can reclaim VAT based on your business’s specific circumstances and local tax regulations.
By adhering to these VAT guidelines, The Hoxton Mix ensures compliance with UK tax laws, providing transparent and consistent services to all customers, regardless of location.
Updated on: 08/11/2024
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