Nov 22
2011VAT on .uk domain registrations
Filed Under (Domaining) by Denys on 22-11-2011
I sent this e-mail to legal team @ Nominet but sadly, never received a reply after a month of waiting.
According to Nominet's current fees schedule:
"VAT is excluded on invoices to our non-UK registrars based outside the EU."
Based on HMRC VAT regulations, "If the place of supply of your services is the UK, you must charge any UK VAT due" (HMRC Reference:Notice 741A January 2010).
My question is: does this mean that it is determined by HMRC that the 'place of supply' for the .uk domain name registration is a country where the registrar is registering the domain name?
Many thanks for your clarification.
"VAT is excluded on invoices to our non-UK registrars based outside the EU."
Based on HMRC VAT regulations, "If the place of supply of your services is the UK, you must charge any UK VAT due" (HMRC Reference:Notice 741A January 2010).
My question is: does this mean that it is determined by HMRC that the 'place of supply' for the .uk domain name registration is a country where the registrar is registering the domain name?
Many thanks for your clarification.
Perhaps some of the readers can express their understanding and/or existing experience?
If the above is correct, then theoretically, US-based registrar can sell .uk domains to UK crowd without charging them UK VAT? (I am aware there are some, apparently non-enforcable regulations from HMRC for this loophole).