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VAT on services

Intergovernmental Organisation

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What is the VAT position for a UK VAT registered company providing services to an Intergovernmental Organisation (IGO). The IGO has a base in the UK and that is where the work will be carried out. The contact at the IGO seems to think that VAT shouldn't be charged (with no reason why!) and I cant see why.

I cannot find much within the legislation on this matter. I dont think the below is relevant to this particular situation. 

A VAT registered trader can zero-rate supplies of goods, (other than new means of transport), or services made to entitled persons and bodies resident or situated in other EC countries provided:

•the goods or services are for either the official use of the entitled bodies or for the personal use of entitled members etc. thereof;

•the supplier obtains from the customer an application for exemption from VAT under Article 15.10 of the Sixth VAT Directive (or, if not available, a written order/certificate confirming eligibility under that Article);

•in the case of goods, they are removed to another EC country; and

•the supplier obtains and keeps proof of removal of the goods to another EC country within three months of the time of supply. This should be the commercial proof of export or removal normally acceptable for VAT zero-rating purposes.

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By paul.benny
03rd Dec 2020 10:33

It may depend on the exact status of the organisation.

I came close to being hired to work for an organisation established by treaty. Even though the workplace was just down the road, it was not in the UK - meaning that IFRS/FRS were not mandatory, there was no PAYE or NI on salaries, UK labour laws, did not apply, etc.

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By Paul Crowley
03rd Dec 2020 10:37

A bit like diplomatic immunity
But no idea if it applies to VAT
Cannot believe diplomats do not pay sales taxes

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By WhichTyler
03rd Dec 2020 10:58

You don't have to charge if they give you a certificate of exemption and it is for official use

https://www.gov.uk/hmrc-internal-manuals/diplomatic-privileges/dippriv4000

When I worked in fashion, certain embassy staff would routinely claim that those designer jackets were definitely a critical part of their official mission...

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Replying to WhichTyler:
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By SA2016
03rd Dec 2020 11:49

Thank you, would this also apply if they were based in the UK as I note it says other EU member states?

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