I work for a UK based VAT registered company with turnover in excess of £10M and subject to statutory annual audit.
The company is seeking to engage a marketing consultant to improve the business online marketing, lead generation, website, seo etc. The consultant that has been selected operates from a Seychelles LTD corporate entity, so a business outside the EU would provide services to a UK based business, B2B.
The consultancy services would be delivered via telephone, email and collaboration tools, via modifications to the company's online advertising campaign accounts with Google, via modifications to the company website, via video meetings, and perhaps for one or two days a month in person at the company offices.
I am trying to determine for sure what the place of supply would be, and whether reverse charge VAT applies or not.
1. According to HMRC guidance 741a point 6.3
HMRC general rule states that the place of supply is the place where the customer is located - in this case our company is the customer, so we are assuming HMRC determine the place of supply is the UK. Is this correct? Does the detail about the method of delivery of the service (much of it being delivered digitally) matter at all in determining the place of supply?
2. According to HMRC guidance 741a point 5.6
They give an example where a US business supplies a UK business and state that since the place of consumption is the UK, reverse charge VAT applies. If the place of supply is indeed the UK, then in our case the invoice for consultancy services I am assuming is going to be subject to reverse charge VAT?
3. Our company also imports physical goods from outside the EU which are subject to some additional duties. Are the purchase of consulting services from outside the UK/EU subject to any additional UK/EU customs or import tax or duty, other than the application of VAT to the transaction via reverse charge (if applicable)?
I've gone round in circles with this for ages, so any clarity anyone can provide would be greatly appreciated!