Place of Supply or these two contracts walk into a German Bar

Place of Supply or these two contracts walk...

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I have a client who manages artists and invoices them a commission.  Both my client and the artists are UK vat registered.  Thus if the artist performs in the UK the invoice is straightforward, ie charge vat both on the artists fees and the commission to the management company.  Now, the artist is booked to perform in, say, Germany.  As this is a cultural event taking place in Germany, the place of supply is thus Germany.  The artist would send the promoter a reverse charge invoice as per B2B and place of supply rules.  However, the second invoice for commission (payable by the artist to his management company), since it is also determined by the place of supply would presumably also be a reverse charge invoice, even though the artist is UK vat registered?  And if that is true, does the VAT101 form therefore need to be populated with a UK VAT registration number, ie the 'EU Sales' would be to a UK registration number.  Which seems counterintuitive.  Or have I misunderstood something somewhere?

(I have a horrible feeling the answer may involve registering for vat in Germany)

    

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By WhichTyler
29th Sep 2014 23:02

Relax
The place of supply of the agency service is where the customer (the performer in this case) belongs, not where he performs, as he is in business. See http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm

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By Portia Nina Levin
30th Sep 2014 10:00

Agreed

As far as I'm aware the place of supply of intermediary services only follows that of the arranged supply where the customer is based outside the EC.

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By James Craig
30th Sep 2014 13:36

Many thanks for that. 


Many thanks for that.  However, the plot thickens..  Can I ask a supplemental? 

They also have artists who are domiciled in other EU countries as well and although they are "in business" they are not necessarily vat registered in these countries.  Again though, the place of supply is the customers' residence and, lets say it is Ireland.  The secondary invoice is therefore to the artist in Ireland and given that they are "in business" would therefore be a reverse charge invoice.  But again, the V101 requires a vat number so how do I complete the V101, without a vat number, for a customer that is "in business"?

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By Portia Nina Levin
30th Sep 2014 13:51

No

Those are the circumstances in which you may have to register for VAT in Ireland. The place of supply is Ireland, but the reverse charge does not apply, because the recipient is not VAT-registered in Ireland.

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