Hi,
I'm the director of a Limited Company that's been trading since October. We're not currently VAT registered but we should reach the threshold by the end of Feb so we'll have to register soon.
At the moment, a large portion of our expenses comes from advertising costs. We use Facebook and Bing adverts.
On our invoices from these companies, VAT is not included or paid.
See this statement on the Bing Invoice:
Microsoft Online, Inc. is a US corporation. No VAT applies to services performed in the United States by Microsoft Online, Inc.
And Facebook:
Customer to account for any VAT arising on this supply in accordance with Article 196, Council Directive 2006/112/EC.
So, my question is simply, do I have to actually pay VAT to HMRC on top of these costs? I'm getting all confused reading up on reverse charge VAT and all sorts.
Same question applies to when we actually become VAT registered.
I'm the director of a Limited Company that's been trading since October. We're not currently VAT registered but we should reach the threshold by the end of Feb so we'll have to register soon.
At the moment, a large portion of our expenses comes from advertising costs. We use Facebook and Bing adverts.
On our invoices from these companies, VAT is not included or paid.
See this statement on the Bing Invoice:
Microsoft Online, Inc. is a US corporation. No VAT applies to services performed in the United States by Microsoft Online, Inc.
And Facebook:
Customer to account for any VAT arising on this supply in accordance with Article 196, Council Directive 2006/112/EC.
So, my question is simply, do I have to actually pay VAT to HMRC on top of these costs? I'm getting all confused reading up on reverse charge VAT and all sorts.
Same question applies to when we actually become VAT registered.