VAT- Rate of supply

VAT- Rate of supply

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Just out a client meeting which I thought would be fairly basic, however it turns out to be anything but so.  Ulless I am missing something basic. Please put me out my misery!

Self employed consultant has the following income and total income is now well above VAT threshold,so we need to be very specific in identifying the treatment of each type of income.  There is a potential late vat registartion issue depending on answer to below.

His income sources are:

A) Written reports for lawyers and drug companies based in the UK

B) Written reports for lawyers and drug companies based outside the UK but in the EU

C) Written reports for lawyers and drug companies based outside the EU

D) Lecturing at courses to graduates. Lectures delivered within the UK

E) Lecturing at courses to graduates. Lectures delivered outside the UK but in the EU

F) Lecturing at courses to graduates. Lectures delivered outside the EU

The consultant is an expert on infectious diseases, i.e. subject normally taught at university.  He teaches this to graduates of hospitals and drug companies around the world.

My analysis is :

A) Standard rate

B) Zero Rated (watch place of supply rules in the other country)

C) Outside scope

D) Exempt

E) Depends on where customer belongs

F) Depends on where customer belongs

Confirmation would be greatly appreciated!

E&F were dependant on place of delivery of lecture prior to 1 Jan 2011.

Also, Does the exemption for private tuition trump the place of supply rules?  i.e. if the tuition was overseas does the exemption of private tuition mean that we don't need to consider the place of supply.

Replies (3)

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By thisistibi
24th Jan 2012 20:04

My opinion

I actually look at this kind of thing quite a lot.  My opinion:

A) Agree, standard rate

B) Not zero rated but outside scope of UK VAT.  Place of supply rule probably not a problem, as I would expect reverse charge to apply provided you can obtain an EU VAT number for the client.

C) Agree, outside scope.  You could still, in theory, have a VAT liability in the non-EU country.

D) Not seen this before, but I understand why you think it's an exempt supply of private tuition

E) Not sure, but I tend to agree.... the private tuition exemption can't apply if the work is performed outside the UK, and the place of supply should fall under the general rule within the EU (not "where performed" for this kind of service since 2011) so possibly once again you could be covered by the reverse charge, provided you could obtain the EU VAT number for the client.

F) You would need to check the VAT rules in the country where the work is performed, and the country where the client is located, if different.

 

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By thisistibi
27th Jan 2012 18:34

@blok

Did it help?

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By blok
07th Feb 2012 14:46

.

tibi.  following on from our PM correspondence.

A) s/rated - agreed

B) o/s scope  -  reverse charge rules apply to EU customer

C) o/s scope.

Am I correct in thinking that "consultancy" i.e. the report writing was unaffected by the place of supply rule changes introduced 1 Jan 2011.  Is this what you are eluding to ? If so then there is no need to consider which side of 1 Jan 2011 these supplies fell into.  Why is that?

D) Exempt if he satisfies the private tuition criteria. S/rated if he cant.

E) Prior to 1 Jan 2011, test was where services performed. Since 1 Jan 2011 test is now where customer belongs.  If EU then o/s scope subject to reverse charge.

F) same as E without the reverse charge aspect.

 

 

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