Hat trick of VAT treats

Key points

• Where should a trader register for VAT when they supply services in more than one country?
• It is expenditure rather than income that can sometimes create the need to register for VAT.
• Can input tax be claimed on supplies that are outside the scope of VAT?

I recently dealt with an accountant’s query that overlapped three important topics that often produce challenges for advisers in the mysterious world of the nation’s favourite tax: VAT registration; the place of supply rules for international services; and input tax claims. It is a bit like my local supermarket where you get three for the price of one at the meat counter on a Saturday afternoon. Happy days. I will share the VAT outcomes in this article.

Case study scenario

Bill is a sole trader computer consultant and he also arranges the sale and purchase of computer software and hardware...