The supplier sells the digital services and requires a proof that customers is a business customer. The sales invoice is made to the company with UK address but the company's employee is based overseas and will be using the digital service from their location. For this reason (B2B supply - customer location based) invoice is zero rated for VAT but what proof can be used to claim that this is B2B supply?
I have describe the activity as sponsorship which indeed involves everything that you've mentioned "marketing/branding benefits and maybe some side benefits such as a tickets to the event" and I also added "Exhibition stand, advertisement, free delegates". I have read notice 741a and have mentioned that VAT charge should be place of supply based and not a customer residence. That is why I suspect that the current practice might be wrong hence the reason for my question.
You can try to refuse paying their invoice until they amend it to zero rate VAT as they should if you have given them your VAT registration number.
You will then need to process a "reverse charge" in your accounts.
My answers
The supplier sells the digital services and requires a proof that customers is a business customer. The sales invoice is made to the company with UK address but the company's employee is based overseas and will be using the digital service from their location. For this reason (B2B supply - customer location based) invoice is zero rated for VAT but what proof can be used to claim that this is B2B supply?
I have describe the activity as sponsorship which indeed involves everything that you've mentioned "marketing/branding benefits and maybe some side benefits such as a tickets to the event" and I also added "Exhibition stand, advertisement, free delegates". I have read notice 741a and have mentioned that VAT charge should be place of supply based and not a customer residence. That is why I suspect that the current practice might be wrong hence the reason for my question.
Exhibition stand, advertisement, free delegates..
And if this was the case, should the invoice show the details for items charged and free of charge?
And if this was the case, should the invoice show the details for items charged and free of charge?
Yes, we wouldn't have the problem then.. But what if it is not the case?
Discounted price to compare with buying three events separately.
There is always this one troll.. yeah go you, "accountant a"!
You can try to refuse paying their invoice until they amend it to zero rate VAT as they should if you have given them your VAT registration number.
You will then need to process a "reverse charge" in your accounts.
There is no mentioning of alcohol in HMRC notices about employees' expenses or entertaining.