How to Account for VAT when dealing with US costomer

We are recruitiing company based in the UK. we provide staff to UK companies but through a US based company. When we invoice we bill the US based company. I know i need to apply the reverse charge for VAT but i dont know how to do this for non CIS. Any help is much appreciated

Hi @ScullyScullion

The VAT treatment for a UK company to a US company can be a bit tricky, so it’s always worth getting advice from an accountant (we’re not accountants).

I believe this may be subject to the place of supply rules, so in this case it may be the US, as that’s where your client is based. If the supply is an EU member state or another country, it may be “out of scope” as far as UK VAT is concerned (see here).

For US based clients, we present the “VAT Exempt” and “Out of Scope for UK VAT” options on the sales invoice:

However, which of these you would use would depend on the exact circumstances. I recommend checking with an accountant to ensure it’s accounted for correctly.

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Thank you for your prompt reply

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