What and when to charge VAT

Uk service supplier providing overseas customers services based in another EU country

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I wonder if anyone can help me as I'm getting very confused and probably over thinking this particular situation.

 

I have a client that hosts overseas event (their company is UK based). They sell sponsorship for their events to customers both in the Uk and EU. 

This year they have an event based in Spain.

I am not clear on if they should be charging VAT to the overseas customers using the reverse charge mechanism or not.

They are B2B customers but what I'm getting tangled up with is if I need to consider the fact that the place of supply is not the country that the customer or my client is from (i.e. my client, the supplier is UK based and supplying a customer whose company is based in Germany, but the service which will be carried out in Spain)

Would my client still invoice the customer and apply the reverse charge mechnaism or is there something more that I need to advise them to do?

Similarly would we charge the UK based customers VAT as the service supplied is in another country?

Any help would be greatly appreciated as I jst can't seem to get my head around it!

Replies (3)

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By Accountant A
19th Dec 2019 15:57

There seem to be a lot of posters on here with clients organising overseas event so if you use the search function you might find something useful.

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By WhichTyler
19th Dec 2019 15:58

Read VAT notice 741 on place of supply of services, especially the part about Events

sponsorship may be a supply of marketing services, but if it includes admission to the event, you may need to split it in to.

If you are charging for admission to an event in spain, you may need to register for Spanish VAT

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RLI
By lionofludesch
19th Dec 2019 18:01

Your problem may be solved when the UK is no longer "another EU country".

Or, of course, it may not.

We don't know

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