Vat Question
mini_schnauzer
Registered Posts: 347 Dedicated contributor 🦉
Hello
A UK client is doing Health & Safety work for a Canadian company who are working for a few days at a festival in the UK - the invoice is to be paid from Canada. Do they charge UK Vat on the service?
Any help is appreciated!
A UK client is doing Health & Safety work for a Canadian company who are working for a few days at a festival in the UK - the invoice is to be paid from Canada. Do they charge UK Vat on the service?
Any help is appreciated!
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Comments
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My gut is saying Yes, VAT should be charged. The services are being provided in the UK, the fact the customer is based elsewhere I believe is irrelevant. (This is different to if goods were provided and exported to an overseas company.)
I think this falls under the "place of supply" rules - see if this link is of any help:
http://www.hmrc.gov.uk/vat/managing/international/exports/services.htm
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I am not sure - changes from January 2011 - look here
http://www.hmrc.gov.uk/manuals/vatpossmanual/vatposs08100.htm
It seems to suggest this service falls under the general rule of B2B (i.e Canadian business therefore out of scope of UK VAT)
Sorry to add to the confusion, maybe someone else will clarify?0 -
Thanks both for your feedback.
Rozzi I also found that page re place of supply. It is a business customer supply so therefore "place where customer belongs" - so I take that as Canada and therefore outside the scope of vat.
HMRC: The general rule for working out the place of supply of services (apart from those covered by special rules)
business customer
the place where the customer belongs
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Thanks both for correcting me - I was looking at this quote from the top of the page I linked to:
"If you are in the UK and the place of supply of your service is in the UK, you charge and account for VAT according to UK VAT rules"
I assumed place of supply meant where you were carrying out the service - i.e. in the UK. I didn't realise it got more complicated than that further down the page!!
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