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VAT on intermediaries

Would my client need to charge VAT to UK Customers

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I have a client who has a Limited company in UK.  They arrange training courses for UK businesses.

They advertise these training courses online and once their customers pay them they then book and arrange the training courses  with training centers.  The Sole Director and shareholder is based overseas and there are no employees in UK and the bookings are made by the director overseas.   They have a UK bank account / payment gateway and all invoices raised under the UK Company.

My client would be considered as an intermediary (between their customers and training centers) but while place of supply is UK (B2B) and Place of belonging is overseas, should the UK customers apply Reverse Charge ?  

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By paul.benny
26th Feb 2020 06:27

I don't see this as being anything other than a regular standard-rated supply.

That said, could you clarify where the training is provided? Or is it online training?

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By sanjay100
26th Feb 2020 11:27

These are construction training courses held in UK. The businesses actually mainly tradesman attended these courses all over the UK to get a card and certificate

I am not sure VAT will actually apply as the company is being run from overseas

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By paul.benny
26th Feb 2020 12:11

Let's unpack this:
We have UK company that sells face-to-face training courses provided by a third party and held in the UK to customers based in the UK.

That looks like a regular standard-rated transaction. From what you said, it seems unlikely to be Exempt under the provisions in VAT701/30.

Perhaps you're over-thinking this because the director of the intermediary company is based outside the UK.

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