Do I need to charge VAT on invoices to my customers when I am working for my Thai company in the UK. I have no work permit to work in Thailand.

It would be the Thai company that collects the VAT - not you. Thus, in that respect, it doesn't matter which employee issue the actual invoice nor where he is located when issuing it.

Whether the company has to collect VAT for the trade you're thinking of is a different matter depending on undisclosed circumstances.

Edited February 6, 200719 yr by Cyberstar

It would be the Thai company that collects the VAT - not you. Thus, in that respect, it doesn't matter which employee issue the actual invoice nor where he is located when issuing it.

Whether the company has to collect VAT for the trade you're thinking of is a different matter depending on undisclosed circumstances.

Ok, I'm talking about doing some IT work in the UK for my Thai company. Does the company need to charge VAT at the Thai rate to the UK client?

Edited February 6, 200719 yr by jflundy

NO VAT on exporting services which are used outside Thailand.

So clearly the service will be used outside Thailand. Is an IT service exported then as I have done the work in the UK?

So clearly the service will be used outside Thailand. Is an IT service exported then as I have done the work in the UK?

Yes - if the Thai company issues an Invoice for a client abroad, it exports a service. Nobody cares if you did the work here or there. You don't need to charge VAT, or more accurately, you charge 0% VAT (VAT for export is set to 0%).

IT services........ 1000 GBP

.

.

Total................ 1000 GBP

VAT 0%............ 0 GBP

Grand Total....... 1000 GBP

And you better have some kind of evidence that the money came from abroad.

So clearly the service will be used outside Thailand. Is an IT service exported then as I have done the work in the UK?

Yes - if the Thai company issues an Invoice for a client abroad, it exports a service. Nobody cares if you did the work here or there. You don't need to charge VAT, or more accurately, you charge 0% VAT (VAT for export is set to 0%).

IT services........ 1000 GBP

.

.

Total................ 1000 GBP

VAT 0%............ 0 GBP

Grand Total....... 1000 GBP

And you better have some kind of evidence that the money came from abroad.

Just adding additional info to the correct info above. You would have to charge any applicable UK taxes (if any), as the work is being performed in this domicle.

Can anyone verify that this information is this 100% Correct?

My Thai accountants are saying that I have to charge 15% tax for my Web Designer services on my invoices to my UK customers.

This seems very bizarre to me!

Can anyone verify that this information is this 100% Correct?

My Thai accountants are saying that I have to charge 15% tax for my Web Designer services on my invoices to my UK customers.

This seems very bizarre to me!

That's really bizarre! I've invoiced foreign customers for services rendered... never had to add on anything.

However, it's a little different if you're the one paying a foreign customer for a service rendered to you; there will be an add on tax of some sort but will be offset by something else. Is that the case?

We regularly invoice overseas customers (Middle East, United Kingdom and United States) for work and have never been required to add VAT.

VAT is a tax levied at the point of delivery, so in the example quoted above the Thai company would not have a VAT liability for the service which is delivered in the UK. However, the UK client company should remit direct to Thailand, not to a UK account.

Regards