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Posts posted by newbold3d
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It’s become apparent my past 12 months earnings through Fiverr are over the £85k VAT threshold. Working through an online marketplace seems to be confusing a lot of accountants. Do you have any source to prove this income is “Out of scope”? Do you have a UK accountant that understands this that you could refer me too?
Hi Tom,
I use Crunch accountants, and it was whomever I spoke with there (it’s a team of people so I couldn’t give you a name) who confirmed this work was out of scope. I believe this is because of the geographical location of Fiverr, but also because of the portal method of operating, explained in the link below.
GOV.UKVAT rules for supplies of digital services to consumers in the EU
Find out about the VAT place of supply rules if your business sells digital services to private consumers in the EU.
Unfortunately, the whole ‘portal’ way of working is still quite new to some accountants, especially the more old-school. Crunch are good as they’re much more up to date with how the world works now, but they’re not the cheapest. Could be worth having a chat with them though.
Fantastic! Thanks for this, i’ll check them out.
Tom
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Along with Fiverr being your customer, the income is Out of Scope when it comes to VAT as Fiverr are registered in Tel Aviv.
Hi there @cubittaudio
Are you selling from the UK?
It’s become apparent my past 12 months earnings through Fiverr are over the £85k VAT threshold. Working through an online marketplace seems to be confusing a lot of accountants. Do you have any source to prove this income is “Out of scope”? Do you have a UK accountant that understands this that you could refer me too?
Thanks in advance!
Tom
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Fiverr Needs To Help Us On Tax/VAT
in Fiverr.com Feedback
Posted
Hi @waqarakram007
I’m not offering advice here but from what i’ve read, Fiverr income is classed as “Out of scope” because Fiverr is a business customer outside of the EU.
The current compulsory VAT registration threshold figure is sales in excess of £85000 in any twelve month period.
You disregard sales that are “Out of scope”, therefore Fiverrs “Out of scope” income will not itself trigger compulsory VAT registration.
@waqarakram007 as a Chartered accountant could you explain why this is incorrect? Thanks for any help you can provide.
Sources (another chartered accountant): https://www.vgwoodhouse.co.uk/bookkeeping-and-vat-topics/services-outside-scope-vat.htm
https://www.vgwoodhouse.co.uk/bookkeeping-and-vat-topics/vat-registration.htm