Should I register for VAT?

As a general rule, most UK based businesses must register for VAT when the value of their supplies in the UK within the last 12 months exceeds £79,000 or this threshold is expected to be exceeded within the next 30 days.

If you are selling your online video content to intermediary businesses overseas then, providing you have their VAT numbers, your sales outside the UK would be regarded as occurring in the countries in which they are based and no UK VAT would be charged.

Selling within the EU

If you are selling directly to consumers based in the EU then, up to 31 December 2014, UK VAT will be charged. With effect from 1 January 2015, the rules are due to change again, although there is a strong chance this will be delayed.

Should people from countries outside the EU buy your content, those sales will be regarded as occurring in the country of consumption, and VAT registration may be required in those countries. If sales outside the EU are likely to be small, it may be better to not sell to those countries as the cost of administration may exceed the profits.

How your business captures this information should be considered as early as possible in your project.

Reclaiming UK VAT incurred on expenditure to provide the above services is not restricted because sales are made outside the UK.