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Where Taxpayers and Advisers Meet

VAT on EU B2C digital services to UK customer

Ht12
Posts:1
Joined:Thu Oct 21, 2021 8:23 am
VAT on EU B2C digital services to UK customer

Postby Ht12 » Thu Oct 21, 2021 8:44 am

Hi,

I wonder if someone can please help me - I am planning a wedding in Italy and a photographer there has sent me a contract including a fee + 22% VAT. I believe that photography is classed as a digital service and I came the below page where it says:
B2B/B2C digital e-commerce outside of the EU

If an EU business is supplying digital services to a business or consumer outside of the EU then no EU VAT is charged. However if the service is effectively used and enjoyed in an EU country, that country can decide to levy VAT.
https://www.rocketlawyer.com/gb/en/quick-guides/vat-on-digital-services

Is this correct and can I say that no VAT should be charged or can I claim it back somehow? I am based in the UK and presumably the service will be considered to be used abs enjoyed outside Italy as I will receive the photos 4 months later.

Many thanks.

les35
Posts:618
Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT on EU B2C digital services to UK customer

Postby les35 » Thu Oct 21, 2021 3:57 pm

VAT is never simple!

The services of a photographer are not a digital service; but the later provision of a digital photograph may be.

The quote is confusing, as VAT ia or is not charged; it is rare that the supplier can opt not to charge VAT.

I would ask the photographer if he would be willing not to charge Italian VAT. But, the alternative may be that he has to register in the UK and charge you UK VAT, so you are no better off!

Are you the wedding planner, or one half of the happy couple? If you are arranging the wedding then you are probably required to register for VAT in Italy. If you are getting married then as a private person you cannot claim VAT, Italian or UK.

robbob
Posts:3152
Joined:Wed Aug 06, 2008 4:01 pm

Re: VAT on EU B2C digital services to UK customer

Postby robbob » Thu Oct 21, 2021 4:03 pm

quick summary I suspect this service may not qualify on complicated technicalities and even if it did there is decent chance supplier would need to register for and acount for uk vat in which case i think they would probably rather turn downthe work!

My answer is very sketchy though - so i could be well of point here



https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers

If your supplies are liable to UK VAT you will need to register for UK VAT if you are based outside the UK.

Note now we have left the EU uk based advisors are out of the loophow these EU rules work - they are likely to be very similar to how they were last year but anything could have changed as the rules are no longer aplicable to us you will be very lucky to get anyone from uk who will cofnirm treatment for definate


Note highlighted text below suggests that from the uk's current perspective the services you mention are NOT covered by the rules you have linked - i am guesing its deemed that the funtion of the work that was done was actually mostly done in Italy - and i would probably agree that assessment

Note if i were you i would at least ask the question - are you able to be given vat exemption if yo8u can evidence you live outside the eu




Examples of electronic supplies and whether or not they’re ‘digital services’
Service e-service Electronically supplied Covered by these rules
PDF document manually emailed by seller Yes No No
PDF document automatically emailed by seller’s system Yes Yes Yes
PDF document automatically downloaded from site Yes Yes Yes
Stock photographs available for automatic download Yes Yes Yes
Live webinar No No No
Online course consisting of pre-recorded videos and downloadable PDFs Yes Yes Yes
Online course consisting of pre-recorded videos and downloadable PDFs plus support from a live tutor Yes No No
Individually commissioned content sent in digital form, for example, photographs, reports, medical results Yes No No
Link to online content or download sent by manual email Yes Yes Yes

robbob
Posts:3152
Joined:Wed Aug 06, 2008 4:01 pm

Re: VAT on EU B2C digital services to UK customer

Postby robbob » Thu Oct 21, 2021 4:05 pm

Note i have presumed you are an individual not a person in business - re reading your question its not 100% clear that you are not in business


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