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.