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Basic lack of EU VAT knowledge

UK Speedway rider with EU contracts

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Apologies in advance but I generally do not get involved with VAT as my business covers predominantly taxi drivers who are not VAT registered nor get anywhere near the registration threshold.

I have a client who is a professional speedway rider, VAT registered in the UK ( although never hits actual VAT threshold ) which is easy for me to do.

Now he has contracts in Poland, Denmark and Sweden. Does he charge the clubs VAT at all/UK rate or local rate?

Is he deemed to be in the UK as 'place of supply', he actually drives over in a van with bikes in tow, rides on the continental tracks and come straight home

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Jason Croke
By Jason Croke
07th May 2021 07:49

See here, section 9.1
https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#...

Place of supply of "where performed" services can fall under reverse charge if the customer is a business (B2B) else there is a liability to register for VAT in the location where the services are performed (B2C). Reverse charge as in your clients' invoice is outside the scope of UK VAT but with same entitlement to reclaim UK input tax as if the invoice was standard rated.

It will be entirely "driven" by the contract your client has, it sounds like his contract is with clubs/event promotors so sounds B2B to me. Your client cannot reclaim any EU VAT incurred on their UK VAT return but may be able to make a 13th Directive claim if they incur sufficient amount of foreign VAT to be worthwhile making a claim.

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