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Where Taxpayers and Advisers Meet

B2C VAT supply in UK, Italy or USA? Photographer

robert8
Posts:4
Joined:Mon Jan 16, 2017 4:26 pm
B2C VAT supply in UK, Italy or USA? Photographer

Postby robert8 » Mon Jan 16, 2017 4:36 pm

Hi

UK based photographer is VAT registered. He travels to Italy for a wedding photo shoot of a USA couple getting married in Italy.
Whilst still in Italy he hands over the USB stick with pictures to the USA couple.

On return to England he then raises an invoice to the USA married couple for the supply of photographs at their wedding.

This is clearly a B2C supply of services, but should the UK photographer raise an invoice to include VAT or is it outside the scope of VAT.
Does he have to technically register for VAT in Italy?

Thanks
Rob

absolutevat
Posts:38
Joined:Wed Jul 01, 2015 3:28 pm

Re: B2C VAT supply in UK, Italy or USA? Photographer

Postby absolutevat » Tue Jan 17, 2017 12:09 pm

Rob

The following guidance will be helpful here:

https://www.gov.uk/government/publicati ... vices#sec9

I would look particularly at sections 9.5 and 12.2. If 9.5 applies, the Italian VAT registration and VAT charge will be necessary. Whilst it doesn't specifically mention photography, there are a couple of 'wedding related' services mentioned. If 12.2. applies, the supply will be outside the scope of UK VAT. Could the supply possibly be classified as the transfer of copyright? This may depend on any contractual arrangement.

It seems unlikely to me (from the details available) that the B2C general rule would apply, and a UK VAT charge be due.

Thanks

Richard

Lavender2306
Posts:21
Joined:Mon Dec 12, 2016 11:03 pm

Re: B2C VAT supply in UK, Italy or USA? Photographer

Postby Lavender2306 » Tue Jan 17, 2017 8:54 pm

Hi Rob,
The services of the photographer on a wedding sound like the services that are covered by sch 4a(14A) of VATA, I.e. services supplied where the activity takes place. So I agree with Richard that Italian registration obligation occurs.

robert8
Posts:4
Joined:Mon Jan 16, 2017 4:26 pm

Re: B2C VAT supply in UK, Italy or USA? Photographer

Postby robert8 » Wed Jan 18, 2017 11:37 pm

Hi Richard and Lavender 2306

Thanks for your comments.
When you say:

"It seems unlikely to me that the B2C general rule would apply, and a UK VAT charge be due. " What do you mean?

Just to clarify

Do you mean:
1. "It seems unlikely to me that the B2C general rule would apply. A UK VAT charge will arise in this situation. "

Or do you mean:
2. "It seems unlikely to me that the B2C general rule would apply, and it therefore seems unlikeky a UK VAT charge be due. "

Thanks
Rob

robert8
Posts:4
Joined:Mon Jan 16, 2017 4:26 pm

Re: B2C VAT supply in UK, Italy or USA? Photographer

Postby robert8 » Wed Jan 18, 2017 11:51 pm

Hi guys

Actually to clarify.
The general b2c vat rule would say vat is charged based on where the supplier belongs.

In this example the supplier is a UK based photographer. So under the b2c general rule the UK photographer would always charge VAT regardless of whether the customer is UK based, EU based, or outside EU (and outside the scope of VAT) because under these b2c rules the customer location is irrelevant; you must charge VAT.

As to whether Italian vat should be charged is a different matter. This sounds like a world of pain. I'm guessing the Italian vat would be offset against UK vat.

I thought the EU was meant to encourage cross border trade!

God only knows what it will be like post BREXIT.

absolutevat
Posts:38
Joined:Wed Jul 01, 2015 3:28 pm

Re: B2C VAT supply in UK, Italy or USA? Photographer

Postby absolutevat » Thu Jan 19, 2017 10:06 am

Hi Rob

Apologies for the confusion. I meant as you have outlined in point 2. It seems unlikely that the B2C general rule would apply, and therefore it is unlikely to be subject to UK VAT.

Thanks

Richard

robert8
Posts:4
Joined:Mon Jan 16, 2017 4:26 pm

Re: B2C VAT supply in UK, Italy or USA? Photographer

Postby robert8 » Fri Jan 20, 2017 6:32 am

Thanks Richard

Cheers
Rob

Lavender2306
Posts:21
Joined:Mon Dec 12, 2016 11:03 pm

Re: B2C VAT supply in UK, Italy or USA? Photographer

Postby Lavender2306 » Wed Jan 25, 2017 11:12 pm

Hi guys

Actually to clarify.
The general b2c vat rule would say vat is charged based on where the supplier belongs.

In this example the supplier is a UK based photographer. So under the b2c general rule the UK photographer would always charge VAT regardless of whether the customer is UK based, EU based, or outside EU (and outside the scope of VAT) because under these b2c rules the customer location is irrelevant; you must charge VAT.

As to whether Italian vat should be charged is a different matter. This sounds like a world of pain. I'm guessing the Italian vat would be offset against UK vat.

I thought the EU was meant to encourage cross border trade!

God only knows what it will be like post BREXIT.
Hi Rob,

Just wanted to make it clear: the general B2C rule will not apply here. Therefore UK VAT should not be charged.
But Italian VAT will be due as well as registration for vat in Italy.
Thus on any business transaction within the EU a VAT is charged only once!


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