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Sale of Services to France

Non-VAT registered business - B2B or B2C?

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My client supplies brand consultancy / PR services through her limited company which is UK VAT registered. She has recently come to an arrangement with a sports personality based in France that she will get bookings for him for TV / speaking engagements etc with UK companies. She will invoice the end client the amount of the agreed appearance fee, plus VAT.

She will pay the sports personality the booking fee less her commission. Trying to work out how to account for VAT on the commission. The sports personality is  "in business" providing his services for appearances and speaking engagements, but payments will be made into his personal bank account, and he is not registered for TVA in France. Is this enough for the supply of services to be treated as B2B, and therefore, given that the place where the customer belongs is France, outside the scope of UK VAT?  

Or is this likely to be insufficient evidence of being "in business" meaning that the supply would need to be treated as B2C and UK VAT charged on my client's invoice to the sports personality?

Any thoughts would be much appreciated!

Replies (4)

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By sculptureofman
23rd Feb 2021 10:11

For the supply of services, you don't need your customer to be VAT registered to be classed as a 'business' (you would if supplying goods).

So this sounds like a B2B supply from you to the business in France.

Thanks (1)
Jason Croke
By Jason Croke
23rd Feb 2021 10:36

Post Brexit, place of supply of services to non-UK customers, is where the customer is, whether they are B2B or B2C, so either way the commission is outside the scope of UK VAT.

I would accept that the sports personality is "in business" even though they don't have a VAT number in UK or France.

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Replying to Jason Croke:
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By Matrix
23rd Feb 2021 14:01

Further to your response, I was just wondering why doesn’t the general rule apply?

Separate question from that asked by the OP but won’t the sportsperson have to register for UK VAT?


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Replying to Jason Croke:
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By Matrix
23rd Feb 2021 17:47

Is it because the services being supplied are PR services and fall under para 16? So if they were B2C then the place of supply is where the customer is based.

If the services don’t fall under para 16 then I don’t see why the general rule wouldn’t apply.

Thanks for any clarification.

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