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should UK vat be charged?

customer is in Spain / goods remain in UK

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Hi, anyone like to take this query on ?

We are an events company (commercial conferences & exhibitions etc) generally producing exhibiton stands/equipment et al......

The events industry has picked up massively recently (thank goodness) but we have just completed a project for a company based in Spain (vat reg'd etc). We supplied a unit for an exhibition in the UK, this stand is constructed on site with all the trimmings...graphics/av equip/desk/labour etc. When the event finishes much of this item is dismantled and returned to our site for storage (can be reused) or if not we will dispose of at customers request. So basically the customer "owns" the items supplied - but they remain in the UK.

Should we charge UK vat, or not......I'm not sure if it would come under the "use and enjoyment" status......

thanks in advance

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chips_at_mattersey
By Les Howard
22nd Sep 2021 17:10

I wouldn’t consider the use and enjoyment provisions, as they don’t apply to this type of supply.
I suggest you are not selling goods, but providing a service of the construction of an exhibition stand. Since it is a temporary item, not permanently affixed to the building, it falls within the General Rule. So, no UK VAT, and the recipient uses the Reverse Charge to account for VAT.
But, if the client has a UK presence and is registered for VAT in the UK, then UK VAT will apply. (It is possible, depending on how the event is organised that the client will be required to register in the UK.)

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By CityzenM
22nd Sep 2021 19:39

Construction vs Hire of Goods

Could be a construction of an exhibition stand as Les states, but if this is a supply of hire of goods/equipment it could be that the construction and dismantling serves are incidental to the main supply (i.e. the hire of goods). In which case the use and enjoyment provisions would apply.

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