Do I have to charge VAT for a service provided in Kuwait as they don’t pay VAT?
I quote from www.gov.uk
A UK trader can zero-rate a supply of goods for export from the EC. Since Kuwait is outside the EC/EU then you dont charge vat.
Take care as the VAT rules for services are very different from the rules for exporting goods. you need to look at the “place of supply” and that is not just determined by who and where the customer is BUT also by the nature of the service being supplied. It would be wrong to say the supply of the service would be zero rated as it will be influenced by these factors.
Regards, Liz www.centurionvat.com
If you are in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules.
If you are in the UK and the place of supply of your service is in another EU country, you don’t pay UK VAT. However, for some supplies, you may need to register and account for VAT in the country of supply. You will need to check with the tax authority in that country to find out how to treat the services you are supplying. A list of EU VAT contacts can be found in Notice 725.
If the place of supply of your service is not in the EU you don’t have to charge EU VAT but you should include the sale in box 6 on your VAT Return.