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VAT place of supply

American production house B2B client

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Hi All,

My client provides and creates movies set. So far, his clientele has been the UK production houses VAT has been pretty straight forward. Now, he is taking on a new project for an American production company whereby he will supply goods and services (set, labour to build the set and furniture and furnishings, etc.) used in the UK for movie production. All the services and goods are being made and provided in the UK.

The foreign company will discard the set after filming, so nothing being physically sent out to America. The value of the contract is approx £200K.

How would VAT work with the American client? 

Thanks.

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By sculptureofman
21st Apr 2021 09:49

It depends.

Probably worth advising your client to pay for specialist advice on a £200k contract.

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Jason Croke
By Jason Croke
21st Apr 2021 12:33

https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#...

Look at the use and enjoyment rules, section 13 and also the examples given. Your client isn't supplying goods, they are supplying services, possibly even might be a straight land related service rather than use and enjoyment, but either route would suggest UK VAT applies.

The USA customer can attempt a VAT reclaim by applying to HMRC
https://www.gov.uk/guidance/refunds-of-uk-vat-for-non-uk-businesses-or-e...

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