Managing EU Orders with WHMCS

[Mandalorian]

In the UK, you don't have to be VAT registered or charge VAT if your annual revenue is below £85K. 
I am wondering how such UK based small businesses manage orders from the EU on WHMCS. 

(1) Do you register for VAT in the UK or the EU and then start charging everyone VAT?

(2) Do you just register for VAT in other EU countries and charge VAT only on EU orders and not the UK orders?

(3) Do you simply add a note to the WHMCS invoices stating "VAT REVERSED" and then not charge VAT?

Obviously, as a small business, charging EU or UK VAT when you are below VAT threshold will make you more expensive and it'll cost you more to manage VAT.

Looking forward to your feedback.

[DennisHermannsen]

If you're not a VAT registered company, you can't charge people VAT.

33 minutes ago, Mandalorian said:

Obviously, as a small business, charging EU or UK VAT when you are below VAT threshold will make you more expensive and it'll cost you more to manage VAT.

Let's say: If you're not a VAT registered company, you charge 10€ for a hosting service. You don't charge VAT and the buyer isn't paying VAT.
If you are a VAT registered company, you will be charging the customer 10€ + VAT. If it's an individual, they pay the VAT - but if the customer is a VAT registered company, they aren't even charged for VAT.

 

[Remitur]

If you're selling to a European customer, you need to comply to the MOSS scheme, and charge to your customer the VAT of his own country:
https://europa.eu/youreurope/business/taxation/vat/vat-digital-services-moss-scheme/index_en.htm

You can't apply for "reversed VAT", because UK is not EU anymore, and so VIES scheme does not apply.

[Mandalorian]

On 12/12/2023 at 7:03 PM, DennisHermannsen said:

If you're not a VAT registered company, you can't charge people VAT.

Let's say: If you're not a VAT registered company, you charge 10€ for a hosting service. You don't charge VAT and the buyer isn't paying VAT.
If you are a VAT registered company, you will be charging the customer 10€ + VAT. If it's an individual, they pay the VAT - but if the customer is a VAT registered company, they aren't even charged for VAT.

 

Thanks but that only applies to UK sales for a UK company. For sales in the EU, EU VAT seems to apply regardless of whether UK company is VAT registered.

[Mandalorian]

4 hours ago, Remitur said:

If you're selling to a European customer, you need to comply to the MOSS scheme, and charge to your customer the VAT of his own country:
https://europa.eu/youreurope/business/taxation/vat/vat-digital-services-moss-scheme/index_en.htm

You can't apply for "reversed VAT", because UK is not EU anymore, and so VIES scheme does not apply.

Thanks @Remitur What you said seems to be the correct interpretation of the EU VAT. My confusion is, if the UK Hosting Company is not UK VAT Registered (because it's below VAT Registration threshold), does it have to register for UK VAT and start charging its UK customers UK VAT if it opts to register for EU MOSS scheme?