https://www.proz.com/forum/business_issues/95386-vat_in_the_uk.html

VAT in the UK
Thread poster: Carole Hognestad
Carole Hognestad
Carole Hognestad
Local time: 11:49
Norwegian to English
Jan 27, 2008

If I live in Norway and hire the services of a freelance translator in the UK would they charge me VAT? And do businesses in the UK in general charge VAT to clients outside of the UK?

 
Russell Jones
Russell Jones  Identity Verified
United Kingdom
Local time: 10:49
Italian to English
VAT threshold Jan 27, 2008

I have no idea whether the rules within the EU to avoid double taxation have any parallel in conventions between the UK and Norway but most freelancers are not registered for VAT, because it is only mandatory with an annual turnover of more than about £64,000.
A few do register though, for particular business reasons.


 
RobinB
RobinB  Identity Verified
United States
Local time: 04:49
German to English
VAT on non-EU services Jan 28, 2008

Carole Hognestad wrote:
If I live in Norway and hire the services of a freelance translator in the UK would they charge me VAT?


No.

And do businesses in the UK in general charge VAT to clients outside of the UK?


Only to private individuals in the EU, and to EU institutions, provided they are registered for VAT. No VAT is invoiced, ever, on services provided to buyers outside the EU (how VAT-registered businesses account for this is an entirely different matter).

That's easy, isn't it!

Robin


 
Carole Hognestad
Carole Hognestad
Local time: 11:49
Norwegian to English
TOPIC STARTER
Thank you Jan 28, 2008

Thanks Russell and RobinB for your answers - they were most helpful.

 
EHI (X)
EHI (X)
Local time: 11:49
particular business reasons? Jan 29, 2008

Russell Jones wrote:

I have no idea whether the rules within the EU to avoid double taxation have any parallel in conventions between the UK and Norway but most freelancers are not registered for VAT, because it is only mandatory with an annual turnover of more than about £64,000.
A few do register though, for particular business reasons.




Hello Russel

Could you please tell me more about these "particular business reasons"?
Thank you.
Regards, Lutz


 
Tobias Ernst
Tobias Ernst  Identity Verified
Germany
Local time: 11:49
Member (2004)
English to German
+ ...
Jan 29, 2008



[Bearbeitet am 2008-01-29 20:48]


 
Tobias Ernst
Tobias Ernst  Identity Verified
Germany
Local time: 11:49
Member (2004)
English to German
+ ...
Reasons for registering for VAT Jan 29, 2008

Lutz Molderings wrote:

Hello Russel

Could you please tell me more about these "particular business reasons"?
Thank you.
Regards, Lutz


1. When you are registered for VAT, you will get a full refund for the VAT on all items you buy for running your business (e.g. new computers, dictionaries etc.).

2. You cannot reasonbly subcontract work to other freelances that are registered for VAT when you aren't yourself, because in that case you will pay their VAT on your own and cannot pass it on to your client.

3. Major headaches when subcontracting to translators in other EU countries who usually are registered for VAT.


 


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VAT in the UK


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