VAT on supply of services to EU non-profit

Should a UK business charge VAT on supply of services to an EU organisation that is an Non-profit

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I had thought the question was fairly straight-forward in that, post Brexit, supply of services to EU is "outside of scope" and therefore not VAT chargeable.

However, on reviewing HMRC guidance, I may have gotten myself muddled with the definition of place of supply. The recipient of the service is a not-for-profit in the EU and I am concerned this means that they are classified as B2C and, therefore, that VAT may in fact be applicable?

(from 6.2 and 6.3 - B2C would be applicable where there is no evidence to support business activities such as a VAT number)

Does anybody have  any experience with this and could expand further?



Replies (2)

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By Jason Croke
26th Nov 2023 10:51

This is somewhat subjective. A not for profit can be in business (Oxfam, local hospice with a charity shop in town), some not for profits like a CIC that exists only on external donations/funding is not in business.

It should be apparent from the customers website if they make sales or not, if not apparent, treat as B2C to be on safe side, although HMRC rarely dig too deep unless the values are high or the customer is so obviously not in business.

Thanks (2)
By VATs-enough
29th Nov 2023 14:51

What type of services?

Are these 'professional services' in nature per chance? e.g. consultant, solicitor, accountant or engineers?

If so, they will be o/scope of UK VAT - either under the general rule (B2B) or under Sch.4A (B2C / non-taxable person)

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