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Charging VAT to US for sponsorship

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Good morning

I'm hoping someone can help me. I am about to invoice a US company (based in the US) for their share in sponsorship of an event being held in China.

Do I charge VAT? I believe they are outside the scope of VAT however further clarification would be extremely helpful. We are a VAT registered company. 

Many thanks

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By spidersong
16th Sep 2019 12:02

The question you need to ask yourself is: are you making a supply and if you are then what is it?

The term sponsorship is virtually meaningless in the VAT world, are you selling access to an event, are you providing advertising, are they making a donation and getting nothing in return, do they get their name on a trophy or splashed across all the event info (still advertising even if you don't describe it as such).

Also what sort of event may be relevant, educational, sporting, entertainment, government junket.

Basically you're unlikely to get much helpful from an internet forum of people who don't know the precise set up, you'd be better finding someone with good experience of international VAT and/or event planning and engaging them, as any advice relies heavily on the precise details and agreements in a potentially highly complex area of the tax.

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By VikkiK
16th Sep 2019 13:38

Hi

Apologies for being so vague. The event is being run and organised by our company. The sponsorship is directly related to Marketing, nothing actually being sold at the event. The business who are co-sponsoring part of the event will have their company logo on all marketing materials. They will also benefit from free access to the events being held, free welcome packs etc.

Hopefully the above is a little more meaningful.....

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By The Dullard
16th Sep 2019 13:55

I'm assuming that the US customer is a business person, and since they're in the US and the event/place of use and effective enjoyment of any advertising is in China, I'd be willing to stick my neck out and say that the place of supply is outside the EU, and thus outside the scope of VAT.

There might be obligations in the US or China.

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