Vat or No Vat... That is the question!

[uber]

We have a company who we do some work for exhibiting at an event we are holding. They are based overseas in the Seychelles and we got them a quotation for some AV equipment which the company is trying to charge vat on. Anyone know if they should be charging vat to the overseas company or can they get away with it without as they are not based / trade here?

[Eric Mc]

Who is charging who?

Is the Seychelles company issuing an invoice to you or are you issuing an invoice to them?

[uber]

Eric Mc said:

Who is charging who?

Is the Seychelles company issuing an invoice to you or are you issuing an invoice to them?

The English company is supplying the service directly to the company based in the Seychelles.

[sumo69]

Perhaps a silly question, but the AV provider is presumably providing the service within the UK?

The "normal" place of supply rule is a business to charge VAT based on where the end business user is located and as outside the EU is beyond the scope.

However, events and exhibitions are governed by 1 of the "special" rules in that the place of supply is where the event is held - so if that is in the UK then the supplier has to charge standard rate as per normal.

Did you ask your accountant by the way?

David

[uber]

sumo69 said:

Perhaps a silly question, but the AV provider is presumably providing the service within the UK?

The "normal" place of supply rule is a business to charge VAT based on where the end business user is located and as outside the EU is beyond the scope.

However, events and exhibitions are governed by 1 of the "special" rules in that the place of supply is where the event is held - so if that is in the UK then the supplier has to charge standard rate as per normal.

Did you ask your accountant by the way?

David

Ah, https://www.gov.uk/vat-how-to-work-out-your-place-...

[sumo69]

uber said:

Ah, https://www.gov.uk/vat-how-to-work-out-your-place-...

Is that alien for "thanks"?

David

[Alpinestars]

sumo69 said:

Is that alien for "thanks"?

David

Are you really expecting gratitude on PH?

[Eric Mc]

I actually think that's a bit unfair. In the "serious" sections of PH I find most people are quite mannerly and thankful for the advice given.

[sumo69]

Alpinestars said:

Are you really expecting gratitude on PH?

It doesn't cost anything so why not?

David

[NorthDave]

I for one appreciate the advice given on here!

When we got 'done' the crux seemed to be whether we had exported the goods or sold to a UK company and they exported.