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Where Taxpayers and Advisers Meet

Vat on services provided to German company attending meeting in London...?

Chewbacca11
Posts: 13
Joined: Fri Jun 24, 2016 1:14 pm

Vat on services provided to German company attending meeting in London...?

Postby Chewbacca11 » Tue Nov 13, 2018 4:33 pm

Hi,

I have a UK VAT registered limited co client who provides services to German business in Europe. He charges zero % VAT usually using reverse charge to sort the VAT.

However, he has a new German VAT registered VAT client requiring him to attend meetings in the UK, which is causing me to second guess 'place of supply'. His services are supplied to the German company, but the activities actually occur in the UK.

VATPOSS06300 states 'The general rule is that services supplied B2B are taxable where the customer belongs'. Which I take to mean that the place of supply is linked to the client and can still be considered to be Germany, despite activity been in the UK. Correct?

Thanks v much.

Chewie

robbob
Posts: 2677
Joined: Wed Aug 06, 2008 4:01 pm

Re: Vat on services provided to German company attending meeting in London...?

Postby robbob » Tue Nov 13, 2018 4:59 pm

Hello Chewie
Which I take to mean that the place of supply is linked to the client and can still be considered to be Germany, despite activity been in the UK. Correct?
Yes - if we presume the general rule applies and that is always the question unfortunately ! does the general rule apply here or not? - i can't think of any reason why it wouldn't in this circumstance in which case you should fine presuming i ma not missing anything - however sometime finding the exceptions to the general rule can be tricky


In that regard (does general rule apply?) Notice 741a is always a good starting point to refer back to particularly section 6.4- this details the scenarios where the the general rule may not apply - One needs to be careful that you fully cross check the subsection advise here to the earlier or section header advise as there is plenty of if and buts here.

https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#sec9

finally you always want to ensure you know the place of belonging for the establishment most closely concerned with the supply (your customer) - section 4 of 741A has further details. It's best not to presume that if you have previously supplied services to Ikea Sweden for these rules, that this will be the case for all supplies - particularly if there is also an Ikea UK!.

Chewbacca11
Posts: 13
Joined: Fri Jun 24, 2016 1:14 pm

Re: Vat on services provided to German company attending meeting in London...?

Postby Chewbacca11 » Wed Nov 14, 2018 3:08 pm

Thanks Rob.


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