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Stock Footage - UK VAT Implications

I am seeking clarification on the UK VAT treatment for sales received from stock footage

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I am seeking clarification on the UK VAT treatment for sales received from stock footage supplies.

One of our client's currently has a second income stream where he receives income from the likes of Shutter Stock, Pond5 etc for every download of the stock footage (photos and videos) that he uploads to their platform and this income is generally paid once a month via Paypal.

All of the platforms are based out of the UK and it is my understanding that they are responsible for the relevant VAT declarations given that the download is from their platform (both B2B and B2C) and that the income received by our client wouldn't be subject to 20% VAT on the basis that their relationship with the platform is B2B.

Effectively, the process is:

1. Our client shoots the stock footage and it is uploaded to the platform.

2. Consumers and businesses download the content from the platform and the platform has to identify whether it is a consumer or business.

3. Our client is paid a set percentage (royalties would probably be the best description) from the platform and they retain the remainder.

Would I be correct in thinking that monies would not be subject to 20% VAT so would in effect be outwith the scope and zero rated?

Your thoughts would be appreciated.


Replies (4)

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By Les Howard
28th Feb 2019 16:59

Who is your client's customer? Is the platform acting as agent or principle?

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Replying to leshoward:
By WhichTyler
28th Feb 2019 17:38

Or licensee?

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By Subcontractor-accountant
28th Feb 2019 23:00

Further to the comments above, I suggest you clarify the VAT position of the platform provider ie whether agent or principal.

If principal then your assumptions above are correct and there are no further VAT issues to worry about as you are selling services outside the UK and VAT accounted for in the country by the buyer.

However if the platform provider is an agent, then you need to be concerned with sales to EU citizens/businesses. as you are the principal selling. I guess you may consider being registered in the MOSS system and pay to the revenue office of THAT EU Country the application VAT.

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04th Mar 2019 15:54

Thank you all for your replies.

On review of the platforms websites, it looks like it is their responsibility to handle downloads, payments and determine whether VAT is charged at their end so it looks like they handle the VAT MOSS side of things along with everything else.

On that basis, do you think it would be correct to treat the payments made to our customer as outwith the scope?

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