Vat/Toms for sports events companies

[mrgarside]

Help! One year on and we are none the wiser. We are a small sports events company, specialising in offering F1 events in Europe. In the past we did not charge vat to uk customers as the place of supply was where event held, for example France. I understand that the rules have changed from Jan 2011 and for sporting events the place of supply is where client (business customer) belongs. To further complicate matters we sometimes provide travel and accommodation as a 'favour' to clients coming to our events. One accountant has told us we need to work under Toms rules now!! Help, confused and have tried so many ways to get to the bottom of this. Any free help or advice appreciated. Thanks.

[Generix]

Help! One year on and we are none the wiser. We are a small sports events company, specialising in offering F1 events in Europe. In the past we did not charge vat to uk customers as the place of supply was where event held, for example France. I understand that the rules have changed from Jan 2011 and for sporting events the place of supply is where client (business customer) belongs. To further complicate matters we sometimes provide travel and accommodation as a 'favour' to clients coming to our events. One accountant has told us we need to work under Toms rules now!! Help, confused and have tried so many ways to get to the bottom of this. Any free help or advice appreciated. Thanks.

I don't do a lot of work in areas impacting by the 2011 changes, but as I like to keep up to date I can offer this tid-bit of advice (for you or who-ever else looks at this to help you out):

Note that the 2011 rules differentiate services in relation to admission, and services relating to organisation (and exection - thats how I like to think of it anyway) - so you must first determine which you are providing; See extract of the new rules below (I'm emboldened/highlighted/both some parts which are important).

"Article 53
The place of supply of services in respect of admission to cultural, artistic, sporting, scientific, educational, entertainment or similar events, such as fairs and exhibitions, and of ancillary services related to the admission, supplied to a taxable person, shall be the place where those events
actually take place.

Article 54
1. The place of supply of services and ancillary services, relating to cultural, artistic, sporting, scientific, educational, entertainment or similar activities, such as fairs and exhibitions, including the supply of services of the organisers of such activities, supplied to a non-taxable person shall be the
place where those activities actually take place.'


I'm afraid I can't really help much more than that as I made a vow to myself to forever avoid TOMS questions and therefore don't have the expertise/background - I did familiarise myself with the change which happened in 2009/10 (can't quite remember when) if you need a summary of what it means for the businesses receiving certain services?

[If I recall without looking it up; basically it means that you need to work as an agent proper when booking hotels etc, i.e. they must be booked in your clients name - not yours etc to avoid falling within TOMS, i.e. treat as disbursements and pass original invoices on, any charge for your service should be invoiced seperately and subject to normal rules]

Hope that is of (some) use. Hopefully you'll get a TOMS expert look at this and help you out though!

[mrgarside]

Thank you for the reply to my question. NEXT question.. Does anyone know a TOMS/Vat Expert that will nto charge the earth?

Thanks in advance.

[les35]

One of the most well-respected TOMS experts is Martin Pooley (www.pooley.co.uk). Do speak to him, and mention my name!
(Les Howard)