vat on international royalties income rec'd by a UK company

[LMT]

Hi - i'm doing the vat for a small limited company (record label) - they have rec'd international royalty income. i am not sure if this should have VAT included as 1/6th on the return? i have no paperwork to help me, no invoice (they never seem to receive anything, the £ just appears in their bank account!) - it will include some EU sales and mainly America plus a few smaller amounts from elsewhere.

[les35]

I would expect that the royalties will fall within the B2B General Rule. But you should seek confirmation that the payers are in business. Ideally, of course, you will be able to track down the contract that provides for royalty payments, and get their EU VAT numbers.
Of couse if HMRC identify the income, they may assess you at the standard rate, and expect you to prove them wrong!

[LMT]

thanks. i've since been advised its for eu sales only, on digital sales only