UK Ltd, a customer from UK and taxes

[Samman Kaseeb Sleiman]

I have UK Ltd. I myself am not a resident of UK.

When I have a customer from UK, who's a resident of UK -- does this change anything in terms of taxes? As opposed to a customer from any other country.

 

[fshore]

You probably have to charge vat.
No change for tax on profits.

 

[Samman Kaseeb Sleiman]

You probably have to charge vat.

Why probably?

 

[fshore]

Why probably?

In some cases not, for example if shipping a product worth more than gbp 150 from outside the UK directly to the customer.

 

[Samman Kaseeb Sleiman]

I don't sell any physical products. I offer services digitally only.

 

[Candoit]

You don't need to register for UK vat if your turnover is under 85k

 

[Samman Kaseeb Sleiman]

You don't need to register for UK vat if your turnover is under 85k

Registering for and charging VAT - are 2 different things. Aren't they?
I may register for VAT after $100 and nobody will be able to prevent me.

The question is when to begin to charge VAT, and for what types of customers. And whether something changes in case my customer is a UK resident.

 

[fshore]

Registering for and charging VAT - are 2 different things. Aren't they?
I may register for VAT after $100 and nobody will be able to prevent me.

The question is when to begin to charge VAT, and for what types of customers. And whether something changes in case my customer is a UK resident.

If you register then you have to charge vat.

You don't need to register for UK vat if your turnover is under 85k

It's not 100% clear, as if the company is not regarded as established in the UK then there is no threshold. The definition of established in the UK is not the same as tax resident or incorporated in the UK.

 

[Samman Kaseeb Sleiman]

If you register then you have to charge vat.

Where have you gotten it from?
From what I've read, registeration alone doesn't make me obligited to charge or pay it.

 

[fshore]

If you register then you can deduct incoming VAT (that you pay to your suppliers), so of course you also need to charge VAT if you are registered. I couldn't find exactly where this is written in HMRC websites, but there are some more info here:
https://www.qualitycompanyformations.co.uk/blog/voluntary-vat-registration/

 

[Samman Kaseeb Sleiman]

What about my original question?

 

[fshore]

What about my original question?

I answered your question, you might have to charge VAT, which is a tax.
No difference from tax on profits, you have to pay those in both cases.

 

[Samman Kaseeb Sleiman]

"might have to charge" isn't an answer.

 

[fshore]

The question is when to begin to charge VAT, and for what types of customers. And whether something changes in case my customer is a UK resident.

You charge vat on all sales to all UK customers (also companies) after you've registered for vat, as long as your product is subject to vat, and the place of supply is the UK.
You should check on place of supply of services for further details.

https://www.gov.uk/guidance/vat-how-to-work-out-your-place-of-supply-of-services

 

[Samman Kaseeb Sleiman]

What does it mean "place of supply"?
"as long as your product is subject to vat" -- how do I know whether it is?