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Choose the model the contracts actually describe
The same customer outcome can involve different sellers, employers and payees:
| Model | What to establish |
|---|---|
| Direct UK supply | UK customer contract and actual delivery, work locations and payment |
| American-subsidiary delivery | Subsidiary customer/group contracts and who sells, employs and receives income |
| Independent branded operator | Operator customer delivery and its separately described UK support and rights payments |
Separate what the support charge and royalty buy
In the fictional operator model, the American business signs the customer contract and employs technicians. The UK parent supplies remote technical escalation. Describe the monthly support charge separately from the royalty for brand rights instead of calling both a licence fee.
Define the promised training, software, urgent help and oversight alongside customer service levels and payment terms. Establish who does the work and whether local staff can commit the UK parent to contracts or other obligations.
Apply the relevant rules to that actual arrangement
UK VAT place-of-supply treatment depends on the service and customer facts, including exceptions; an American billing address is not enough. The U.S. market guide identifies federal, state, county and city tax layers. UK VAT, American sales/use and corporate taxes, and royalty withholding need their respective assessments.
The guide also explains territorial IP rights: UK trademark registration does not replace U.S. availability/protection research. And ordinary business-visitor travel should not be assumed to permit service delivery or employment. Check actual proposed site work before promising a UK specialist.
Scope
- This identifies the supply model, not a VAT, treaty, U.S. tax, brand-rights or work-permission outcome. Actual entities, activities and locations require assessment.
Next step
Identify the actual seller, work and support/rights payments, then assess the taxes and commitments attached to those contracts.
Sources & review notes
UK business.gov.uk
Passage, dates and research notes
official-guidance · Doing business in the US: tax, IP, entry requirements
Taxes can be imposed by both the US federal government and individual states, counties and cities.
The guide contains tariff and visit-status summaries. No numeric tariff, universal Visa Waiver eligibility, or universal dispute-forum claim is republished.
UK business.gov.uk
Passage, dates and research notes
official-guidance · VAT and taxation / place of supply
Place of supply rules will determine whether you pay VAT in the UK or in the country of supply.
Used to identify a separate VAT workstream, not to determine the treatment of a specific supply.
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