the place of supply is the UK
the supplier belongs outside the UK
the customer is a relevant business person (see VATPOSS01350) who belongs in the UK
the supply is not exempt (this includes exempt supplies subject to an option to tax), and
for supplies not within the general rule (see VATPOSS06000), the customer is VAT registered in the UK.
The effect of the reverse charge is that the supply is deemed to be made by the UK customer instead of the overseas supplier. Consequently although the overseas supplier is making supplies of services that are within the scope of UK VAT, they are disregarded and so do not count as taxable supplies for the purposes of registering under Schedule 1 of the VAT Act 1994. Where, on the other hand, the relevant UK business customer is unregistered, any reverse charge services they receive must be added to their taxable turnover when considering the need to register.
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