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VAT - Outside EU

Client provides PR services in UK for various bands/artists.  They invoice Canada/USA etc for the PR services.

Can you confirm my thinking in that NO VAT is charged.

Regards

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09th Sep 2009 13:27

Can't see why it should be ... unless

If it is a service carried out in the UK for a US or Canadian client no problem. If however the clients were actually in the UK, perhaps on tour at the time, when the service was provided - and provided only for the tour, not as part of an ongoing service - then the situation might be different. Check the rules for "entertainers".

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avatar
09th Sep 2009 13:59

Advertising services

The services provided by your client fall with paragraph 2 of Schedule 5 VATA 1994. The place of supply of advertising services takes place where the customer belongs.

If your client's customers belong outside the EC, then the supplies will be outside the scope of VAT.

I attach links to HMRC's Notice 741 'Place of supply of services'  & would refer you to paragraph 13.4http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.por... and paragraph VATPOSS09250 of there VAT Manual http://www.hmrc.gov.uk/manuals/vatpossmanual/VATPOSS09250.htm

 

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