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.
• From 1 January 2021, businesses and individuals registered for VAT are no longer required to complete EC Sales lists on services provided after this date.

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.

Withholding Tax

For members resident for tax purposes outside of the UK, please see the tax section of the Directors UK website for information on withholding tax.

Foreign Distributions Index

Please note: you can distinguish between a UK payment and a foreign one by the invoice number - All foreign payment invoice numbers end in the letter ‘F’.