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VAT on services outside the EU

VAT on services outside the EU

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I'm hoping that one of the regular VAT expert could clarify this for me.

Our client has designed a ventilation system for a hospital in Africa.  They produced drawings and specifications, all carried out in the UK, then issued them to a facility management company in the UK.  Although the end client is in Africa, 8.6.2 of VAT Notice 741A seems to imply that work that is not physical work carried out on the goods themselves is not zero-rated.

Has anyone an opinion?

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By George Attazder
19th Jun 2012 12:35

It's not a service...

... being performed on goods. It's just a service (carried out long before there are any goods).

Whether or not the customer is a relevant business person, these are services related to land, and so are supplied where the land (the hospital) is.

So you're right these aren't zero-rated services, they're services that are outside the scope of VAT, having been supplied in sunny Africa.

Thanks (1)
Replying to lionofludesch:
Quack
By Constantly Confused
19th Jun 2012 13:02

I agree, but...

George Attazder wrote:

... being performed on goods. It's just a service (carried out long before there are any goods).

Whether or not the customer is a relevant business person, these are services related to land, and so are supplied where the land (the hospital) is.

So you're right these aren't zero-rated services, they're services that are outside the scope of VAT, having been supplied in sunny Africa.

Actually I believe Monsoon Season is about to start any day now.

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By George Attazder
19th Jun 2012 13:08

Then they'll have...

... good weather for ducks!

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