Value added tax
Some information on value added tax (VAT) and how it affects BitFolk customers.
Who is charged VAT?
| Resident inside the European Union Value Added Tax Area | Resident inside the United Kingdom | Charged VAT at standard UK rate | |
|---|---|---|---|
| Not resident inside the United Kingdom | Not registered for value added tax | ||
| Registered for value added tax | Supplied services exclusive of VAT; reverse charge mechanism applies | ||
| Resident outside the European Union Value Added Tax Area | Outside the scope of VAT | ||
This mostly depends on where the customer is resident.
Customers resident within the United Kingdom
All customers (individuals and businesses) resident within the UK will be charged VAT at the standard UK rate.
Customers resident outside UK but within the European Union Value Added Tax Area
Customers outside the UK but within the European Union Value Added Tax Area will be charged VAT depending on whether they are registered for VAT.
Not registered for VAT
EU-resident customers who are not registered for VAT will be charged VAT at the standard UK rate.
Registered for VAT
EU-resident customers who are registered for VAT will be supplied services exclusive of VAT provided they can supply a valid VAT registration number. These customers will typically be required by their EU member state to pay VAT on these purchases under the reverse charge mechanism.
Customers resident outside the European Union
Customers resident outside the EU will not be charged VAT.
Current rate of VAT
The current rate of VAT is 20%.