VAT charging and USA clients

[Erin]

Hi we are working with Clients from the US for the first time and vice-versa for them. They were worried about the 17.5% VAT add-on to their potential invoice.
Is there a way that they can claim it back or that we don't charge them for it?
The services that we are providing are camera crews to a TV production company. We are classed as a sole trader and VAT registered. I'm not sure whether that info will make any difference - but might help.
Can anyone help - I spoke to someone at the tax office and they seemed unsure.

[paultaylor@vatease.c]

Your supply is one of services and the precise nature of the service will determine whether it is deemed to be supplied in the UK (and subject to UK VAT), where physically carried out (VAT will be dependant upon where this is) or where your customer is (i.e. US and not subject to UK VAT).

If you must charge UK VAT then it is likely that the US company will be able to reclaim it through a 13th Directive Refund (dependant though upon the nature of its activities).

It is also possible that your customer’s activities will cause them to have to register for VAT in the UK.

A more precise answer is likely to require a review of the nature of the supplies between you and your customer.

Regards
Paul Taylor
http://www.vatease.co.uk/