Hat trick of VAT treats

I recently dealt with an accountant’s query that overlapped three important topics that often produce challenges for advisers in the mysterious world of the nation’s favourite tax: VAT registration; the place of supply rules for international services; and input tax claims. It is a bit like my local supermarket where you get three for the price of one at the meat counter on a Saturday afternoon. Happy days. I will share the VAT outcomes in this article.

Case study scenario

Bill is a sole trader computer consultant and he also arranges the sale and purchase of computer software and hardware systems as an agent earning commission for his services. His annual sales average is £60 000 less than the compulsory registration threshold of £85 000.

He has recently agreed to act as an intermediary in a major hardware deal between a French-based supplier and a...