A small UK book publishing company (micro business, t/o below threshold hence not registered for VAT) receives modest sums for book advances and royalties from various other EU states (B2B transactions). Sometimes invoices have to be raised, but not as a rule. Overseas sub-licensees just send funds to UK as per licence terms. Will that UK company now be required by other member states to register in each country where presumably the place of supply is now deemed to be the relevant licensee's member state? VAT on (IP) book royalty advances and licences may well be 'outside the scope of VAT' in UK, but does that rubric apply in the other member states (and they may have a zero registration threshold)? Any views on this would be very welcome. Smallco concerned doesn't want to incur penalties abroad for non-registration in other states, still less a European Arrest Warrant from 'a foreign country of which we know little'!
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As the UK company is making the supply on a B2B basis the supply is Outside of the Scope UK VAT, assuming customer is outside the UK, and the Place of Supply is where the recipient is established. The recipient assumes responsibility for accounting for the VAT and the UK company is not required to be registered anywhere other than the UK.