VAT information for Foreign Distributions
If you are registered for VAT in the UK as an individual our understanding is as follows:
- The receipt of foreign distributions from us arises from income deemed to be outside of UK VAT and therefore has no VAT attached nor should you invoice us for VAT on the total distribution.
- The total distribution (ignoring any VAT or management fee deductions) is however an output for the purposes of completing your VAT return and should be included in box 6.
- The management fee which we charge is an input and should be included in your VAT return in box 7.
- The VAT on the management fee is a VAT input and should be reclaimed and included in box 4.
- If you are registered for the VAT flat rate scheme the receipt of foreign distributions from us is not treated as an output for the purposes of calculating the amount of VAT you pay.
- Set out below are the foreign country codes identifying the organisation and their country of residence for VAT purposes. Those marked with an asterisk are within the EC and therefore if you receive a distribution from us relating to those organisations you will need to complete an EC sales list.
- These are guidance notes for your assistance only and we do not accept liability for the content. You should at all times refer to the VAT regulations and seek advice from your professional advisors.
FOREIGN DISTRIBUTION COUNTRY CODES
Dated- March 2011