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Readers’ forum: Does a US LLC outsourcing services to the UK pay VAT?

11 January 2022
Issue: 4823 / Categories: Forum & Feedback
Outsourcing

I operate through a single member limited liability company (LLC) registered in the US. The work is outsourced to independent contractors in several Latin American countries. The LLC’s clients are UK-registered businesses. For the past ten years I have lived as a digital nomad with no residency anywhere and never spending more than 30 days a year in the US or UK despite the fact that I am a UK citizen.

I have two questions:

  • If I have to pay VAT is it only on the income from the clients located in the UK or all my clients?
  • Do I only need to pay if it is over a specific amount? I read somewhere about a threshold of £85 000 of VATable income a year?

Query 19 870 – Digital Nomad.


It is likely that the LLC will not have to register for UK VAT.

I am...

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