Reverse VAT charge on grant funded activity

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Help - I'm getting very confused.  We are a mainly grant funded charity, that works globally (mostly outside of the EU).  We get roughly a quarter of our income from membership fees which we've been advised are either exempt (EU members) or outside the scope (other members). We work a lot through networking events, generally outside the EU, for which we only charge a nominal fee - the costs are covered through fundraising. These costs are location based (venues) or services (event management, etc) - are the costs relating specifically to members outside the EU also outside the scope for reverse charge VAT???  And which net costs do I need to consider for the threshold calculation? All of them, or only those relating directly to the exempt income?  Thanks 

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By WhichTyler
29th Jan 2019 14:25

Is your fundraising income VATable (eg any sponsorship benefits provided in return for the cash) or is it just grants & donations?

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Replying to WhichTyler:
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By cmbkvso
29th Jan 2019 14:31

Just grants...

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By WhichTyler
29th Jan 2019 14:56

According to my friend Portia:

Services received by a UK business person that have a UK place of supply under the place of supply of services rules must treat the supply as if they have made it to themselves, putting it within their turnover for the purposes of registration.

It doesn't sound as though (i) you are making any taxable supplies yourselves, and (ii) if the events are outside the EU, then no UK place of supply under place of supply of services rules.

Though it might be worth getting paid professional advisors who know your situation better to review the above and confirm it for you. Complex VAT is easier and cheaper to get right at the outset than correct later.

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Replying to WhichTyler:
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By cmbkvso
29th Jan 2019 15:10

Thanks - we've asked (and paid) for VAT advice, but it's already been painfully expensive and they haven't actually given us any advice that I can use to complete a registration threshold analysis (I suspect they want to charge us more to do it for us). The firm has just answered piecemeal, and sometimes in a contradictory manner... Grrrr! Thanks for the response though. Place of supply rules I'm fine with, it's the outside the scope as it relates to reverse charge... Thanks

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