Hi,
Client of mine is a recruitment company and they are providing recruitment services to a client based in the Middle East with staff being posted to work in the Middle East.
Would they be charging VAT on these services?
Thanks
Matt
Replies (2)
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No
Guidance found here:
http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm
Basic premise:
If the place of supply of your service is not in the EU, then your supply of services is outside the scope of VAT. You don't have to charge EU VAT or include the sale on your VAT Return.
Question is - where is the place of supply?
As the services are B2B I would say the place of supply is Middle East.
There are special rules which the above link skims over - I had to know the special rules for events inside out and have met with specialist HMRC VAT inspectors who also struggled a bit on the special rules.
I have no idea if recruitment is also governed by additonal legislation but I have no reason to think this is the case.
The Place of supply of your services is the country in the Middle East therefore there is no UK to charge. There are no overriding rules with regards the service you supply and you should also include the value of the sale in Box 6 of your VAT return