Share this content

UK Digital Marketing Campaign - VAT Chargeable?

Managing a UK campaign and billing a company in the USA

Good afternoon,

I have become increasingly stuck in respect of a client of ours. The client runs a digital advertising company which will be undertaking a campaign for a US based company. As far as I know the campaign will be targeting UK based customers (adverts popping up online for things such as loans, products etc). A few other non UK customers will end up being targeted by error (due to the nature of the internet). I have seen a report from another job and 99% of customers that were targeted were UK based with others from all 4 corners of the globe.

My questions is should VAT be charged to the US company? The 'place of supply' will be the UK. Tehnically there will not actually be a 'supply' of digital goods as such. The end target will be private persons, not companies. 

Unfortunately digital services is not something we deal with on a regular basis. Any help would be greatly appreciated as it seems a minefield.

Many thanks,





Please login or register to join the discussion.

16th May 2018 16:51

Advertising services are treated as General Rule services, and the Place of Supply is where the business customer is located. The location of the persons viewing the advertising is not relevant.

Thanks (2)
to leshoward
16th May 2018 17:38

Hi Les,

Many thanks for your answer. This is extremely helpful.

Do you have a VAT notice link I could view?



Thanks (0)
17th May 2018 21:21

HMRC Notice 741A provides the guidance.

Thanks (1)
Share this content