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Save more than 16% on Zoom subscription

2 April 2020, Advocates, Artists, Barristers, Companies, Creative Industries, Employer, General, Musicians, Sole Traders

Pay less for online subscriptions

It seems that almost everyone is turning to online communications in the current situation, with Zoom, WhatsApp and Skype seeing a dramatic increase in use.  Even the UK prime minister is an advocate of Zoom.  Save more than 16% on Zoom costs by following the steps below.  You can also apply the same idea to Adobe, Microsoft Office and other online services.

Save more than 16% on Zoom subscription

Online services from outside UK

Services provided from outside the UK are subject to VAT.  Where the service is supplied from another EU country, VAT is charged from that country (e.g. Ireland), but can’t be reclaimed in the UK VAT return.  For any of these services you should be able to add your UK VAT number if you are registered for VAT.  If you have provided your VAT number the supply will be made on the reverse charge basis and no overseas VAT will be suffered.

VAT number format

UK VAT numbers are made up of 9 digits.  For some services such as Zoom you are only required to enter the nine digit number e.g. 123123123.  Other services require you to use the prefix GB e.g. GB123123123.  If your VAT number is not recognised when you add it to your online billing account, try adding the GB prefix.

Save more than 16% on Zoom

If you don’t put your VAT number into the Zoom account settings you will be charged irrecoverable VAT.

To enter the VAT ID number, please follow these steps:

  • Log in to the Zoom Portal
  • Under Account Management, choose the Billing pageSave more than 16% on Zoom subscription
  • Under Billing Contact, choose to edit the VAT Number (which appears after the Billing Contact Address field)Save more than 16% on Zoom subscription
  • Enter your VAT ID number and save by clicking on update.

Other online services

Other services including Adobe and Microsoft 365 are supplied from Ireland.  You can also avoid overseas VAT by entering your own VAT details:

Adobe

Follow these steps to update your VAT details:

  • Do one of the following, depending on the options shown in your screen:
    • Click Manage Plan. Then click Manage payment.
    • Under Plans & Products, click Edit payment details.
  • In the pop-up window, update your tax identification number in the tax ID field.  The name of the field depends on the tax identification number applicable in your country, for example VAT ID or GST ID.

Office 365

The VAT settings are in the admin portal

Adding or editing a Vat ID

  • In the Microsoft 365 admin center, go to the Billing > Products & services page.
  • In the Settings & Actions section, select Edit service usage address.
  • On the Edit your service usage address page, enter your VAT ID in the VAT number box, and then select Save.When complete, VAT will not be charged on your next bill.

Accounting for Reverse Charge VAT

You need to account for VAT on the services above on the Reverse Charge basis.  This applies even if you are on the Flat Rate Scheme for VAT.  If you need to register for VAT or need help to report your Reverse Charge VAT under Making Tax Digital, please contact Alterledger on the form below.

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