UK Freelancing to EU Client (VAT MOSS)

Question

I am based in the UK and have been asked to develop a website for a business client based outside the UK (IRL). The website will contain an e-commerce element allowing them to sell services, not me, my work is done once I handover the completed website.

I'm registered as self-employed with HMRC, but not VAT registered as I fall within the current threshold.

I've been reading about VAT MOSS online, and i'm slightly confused. According to the docs here, under 'Defining digital services' I can see that 'website supply or web hosting services' is listed.

Does this mean I have to register for VAT MOSS, and VAT?

It seems like a lot of effort, especially as my turnover is so small. This may be my only job this year.

Any advice is appreciated.

Answer 1

As you are supplying services from UK to an EU country you may need to check with that country and register there for VAT even if it is for a pittance . In this case UK threshold should not be your yardstick (except when the payments impact your turnover)

You need to ensure that this IS a one off cross border service (no supply by you of physical materials or chargeable content such as images).

Be cautious of calling yourself remote labour ensure it is something like remote programming service

You need to ensure you are not hosting or running an ongoing service. Thus consider single fix fee rather than retainer.

You should thus keep your exposure online to the minimum necessary for your client to upload any changes.

You really should have a good accountant to check with first. If not the safest way to proceed otherwise is call HMRC VAT Help Opening times: Monday to Friday: 8am to 6pm on 0300 200 3700

Explain clearly what service you are providing and ask them if they consider you need to contact the other country, If so do they have contact details for your type of service.