VAT on Services for Canadian resident

VAT on Services for Canadian resident

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I have been approached by a client from Canada for general tax advice relating to his properties in the UK.

When I invoice him, should I invoice him with VAT or VAT is not required to be charged on the services.

As per the general rule, when invoicing B2C the place of supply will be based on where the supplier is based not customer? However does it apply to accountancy services as well?

Replies (7)

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By User deleted
06th Jun 2015 12:06

You need to add VAT given the 'land' connection

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By ssvshankar
06th Jun 2015 12:32

Thank you tax guru. Would you mind to explain a little bit more on that.

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By Steve Kesby
06th Jun 2015 12:38

The place of supply is where the customer belongs

"General tax advice relating to his properties in the UK" is not a land-related service, as they do not directly relate to a specific piece of land. See para. 6.5 of VAT Notice 741A, and, more specifically, VATA 1994, Sch 4A, para. 1.

Either the supply is B2B, where the general (where the customer belongs) B2B rule applies, or, as the OP suggests the supply is B2C, in which case the supply is where the customer belongs, by virtue of para. 16(2)(d) of Sch. 4A. See para. 15.5 of Notice 741A.

However you look at it, the supply is outside the scope of VAT.

You do need to have evidence that the customer's place of belonging is in Canada. This may be covered within your MLR documentation, if they provide a utility bill or similar with a Canadian address.

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By User deleted
06th Jun 2015 13:20

Steve's response is the correct one

.

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By User deleted
06th Jun 2015 13:57

I missed the 'general tax advice' part in the OP; my response was based on para 15.5.6 of 741A.  

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By ssvshankar
06th Jun 2015 14:18

Thank you very much Steve, BKD & Taxguru.

greatly appreciated.

will it be considered outside the scope of VAT even if the client is a UK citizen & living in Canada - all MLR documents are there in place to confirm it.

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By User deleted
06th Jun 2015 14:49

Outside the scope

A customer who is a private individual belongs at his usual place of residence.

Assuming of course that in your client's case Canada is his usual place of residence.

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