We are holding a training course in the UK for a business customer registered for VAT in Grenoble. Do I charge UK VAT on the invoice or not?
Related resources
Replies (3)
Please login or register to join the discussion.
Yes
Looking at HMRC's general guidance on how to work out the place of supply, I believe it comes under the "physical performance" section:
http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm
Physical performances
For performances the place of supply is always where the performance takes place, irrespective of where the customer or supplier is located. These include such services as:
entertainment and cultural performances, including sports events, before a live audienceservices for exhibitions, conferences or meetings - see below for more on exhibitionssupport services relating to performances and exhibitions, such as organising supplies and services
Services covered by this rule generally relate to a live event or physical activity, and include:
sporting appearances - other than sponsorship events (which count as advertising)singers and actors appearing before a live audiencespecialists providing a service at a conference or exhibition.
Services that aren't covered by this rule include:
physical performances for sponsorship or product endorsementancillary services, eg, written translations, which are not provided at the performance venue itself (the place of supply of ancillary services is always determined by where they are actually performed)
Exhibition organising needs careful consideration as it can cover a range of services. It is important to consider precisely the service provided as this will determine the place of supply. For example, if you organise an overseas exhibition from the UK and subcontract all services to UK suppliers, the place of supply of your service is in the UK. However, if you provide a complete package to exhibitors - such as floorspace, stands and installations - and provide that package on-site, then your place of supply is generally in the country where the exhibition is held.
Place of supply
determines the taxable position.
If supplying a French company with training services, to be carried out in France, then supply can be zero rated as long as your French customer is VAT registered.
Regardless of who you are supplying, if you are providing the services within the UK then you will need to charge VAT on your supply.
Be careful on timing
I assume this is to take place this year.
Up until 31st December 2010 the place of supply of Educational supplies is where they are physically performed, however from 1st January 2011 they'll be subject to the general Business to Busines rule for place of supply and will take place where the client belongs.
see sections 8 and 5 of Notice 741A: