VAT on goods sold in EC

VAT on goods sold in EC

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I act for a UK charity that hosts events through the world. At these events members of the public make donations and also buy goods. The  goods are manufactured in the USA and Austraila and delivered directly to the venue. The  event organiser, pays for venue hire and remits to the UK charity the net proceeds of sale of goods and donations. Most of the event organisers are individuals and not businesses. With reference to events held in the EC is this a zero rated supply? Alternatively does VAT need to be accounted for in the UK or in the EC country where the event is held?

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By shaun king
12th Mar 2013 18:59

Who is actually selling the goods and who imports the goods into the country where they are sold (Importer of Record)

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Replying to D V Fields:
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By davidterry
12th Mar 2013 19:34

VAT on goods sold in EC

Hi Shaun,

The goods are sold by the event organiser and the goods are bought /imported by the charity.

 

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By Chris Smail
12th Mar 2013 19:02

What is the relationship between the eventholder and the charity

Are these donations from the event organiser or is there a contract in place to organise the event on behalf of the charity?

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Replying to D V Fields:
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By davidterry
12th Mar 2013 19:40

VAT on sale of goods to EC

Hi Chris,

There is a contract in place to transfer all the proceed from the sale of goods to the Charity, after deducting a 5% charge.

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By shaun king
12th Mar 2013 19:41

Hi David

 

Then you potentially have a problem as the Charity has imported the goods and if sold by the event organiser it follows that the charity must have supplied the goods to the charity in the country in which they were imported. In Most Member States any ecnomi activity gives rise to the need for the Charity to register for VAT.

My second concern is does the event organiser account for VAT on the sale of the goods? If he doesn't how is the VAT brought to account as it cannot be on a UK VAT return?

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By Chris Smail
15th Mar 2013 17:41

So the event organiser is a sales agent?

How is this activity within the objects of the charity? Fundraising?

I agree with Shaun, if the charity's agent is soliciting retail sales of goods throughout Europe then the charity is subject to local regulations and probably needs to register throughout Europe.

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