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VAT on services supplied to overseas customers

Should I charge VAT on services to Asian customer?

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We have recently been contacted by a business in China, asking us to sell a few items on their behalf in the UK. There will be a commission for our services and we usually charge VAT on this. However, all of our usual customers are UK or Europe based. Since this customer is based in China, is this outside the scope of VAT, even though the services are being supplied in the UK? I could not find any relevant sections to answer this in the legislation. thanks 

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By Les Howard
18th Sep 2019 09:47

Place of Supply of 'General Rule' services is where the recipient belongs, where the recipient is a business person. You will need adequate evidence of their business status. The supply is therefore outside the scope of UK VAT.
The legislation is VAT Act 1994, s7A(2)(a).

Thanks (1)
By WRooney93
18th Sep 2019 09:59

That's great.
Thanks Les

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