VAT on service provided overseas

[Pistom]

We are UK based and VAT registerd providing a technical support service to a company in USA, receiving a fixed fee every month regardless of whether we do anything.

As the sale is happening in USA, am I right in thinking that VAT is zero rated even though we are doing the work in the UK?

[RC1807]

Your accountant should be able to tell you this.

If the UK has a double taxation treaty with the U.S. (I suspect it does), then there's no VAT on invoices issued to a U.S company.

I'm not UK based, but I invoice a U.S company for services I provide to them.
I'm VAT registered, based in Luxembourg.
Lux and the U.S have a DTT in place: I don't have to charge VAT on invoices to the U.S.

[cts1975]

If you are based in the UK then the place of supply would be the UK so VAT should be charged?

[Pistom]

cts1975 said:

If you are based in the UK then the place of supply would be the UK so VAT should be charged?

Thank you.

I've now found https://www.gov.uk/guidance/vat-how-to-work-out-yo...

I see that there are certain special rules if you are an intermediary. I will discuss further with our accountant as I'm not sure if we qualify as that.

We used to get paid a percentage of the value of the materials we'd give technical advice on and propose but changed that some time ago to a fixed fee for ease.

[trickywoo]

cts1975 said:

If you are based in the UK then the place of supply would be the UK so VAT should be charged?

You've got that backwards - the supply in this case is in the US.

No VAT.

[WhiskyDisco]

My mate is an IT contractor with one client based in US. Whilst being VAT registered he does not add VAT to invoices presented to the client in US.

He does however claim VAT back on anything he buys in relation to running the business in the UK.