VAT for customer from Jersey

r4chy Registered Posts: 30 Regular contributor ⭐
Hi all

I have just had a query at work from a customer who is based in Jersey. Are we able to supply hotel accomodation conference/meeting services and team building activities to them without VAT as they are based in Jersey even though the event would be in England. Having just battled my way through the guidance from the HMRC website my feeling is that we would still have to charge them VAT but thought I'd throw it open on here to see what other people thought?




  • *Jo
    *Jo Registered Posts: 509 Epic contributor 🐘
    Hi, im not yet qualified so please confirm my answer but...

    At my work we supply goods to various countries including Germany. The company we supply in Germany sometimes have goods delivered to UK. In this instance we have to charge VAT as the supply is in UK. I would think this applies to your situation as the services/goods are supplied and used in the UK I would charge VAT. In order to get around the problem of having two different VAT codes we have the customer set up as two different customer codes (one VAT exempt) the orders/invoices are posted to whichever customer code applies.

    Hope I have given you the right answer.
  • Hasan.Ahmet
    Hasan.Ahmet Registered Posts: 87 Regular contributor ⭐
    The determinant is the place of supply except for advertising.
  • Jon_1984
    Jon_1984 Registered Posts: 186 Dedicated contributor 🦉
    We offer training courses in the UK and have to charge VAT on them, even if customer is VAT or equivilent registered abroad because the service is supplied in the UK.
  • sheelagh
    sheelagh Registered Posts: 133 Dedicated contributor 🦉
    Place of Supply

    Place of Supply rules are still complicated, even with the new simplifed rules.

    You should read the new Place of Supply notice - Notice 741A. It isn't available in print yet, but you can read it here

    There are special rules for some hotel accommodation becasue it comes under "Land related" services. From what you have said, I don't think this applies to your situation because the service (ie training/team building) is not directly related to the land where it is delivered, but it would be worth reading Section 6 to make sure. If special rules don't apply, you refer to the general rule.

    The general rule is that if the customer is "in business" then the supply is where the customer belongs, and if the customer is not "in business" then the supply is where the supplier is based.

    The trick is to work out
    1) If your supply comes under the general rule
    2) If your customer in business ( this does not always mean they are VAT registered)
    3) Where does the customer belong.

    If you think the general rule applies, and your customer is in business in Jersey, I don't think VAT is chargeable.
Privacy Policy