Accounting, VAT

GENERAL VAT RULES – Guide prepared 08 Sept 2017

B2B supply of services (includes businesses, charities, government departments or any other organisation involved in business or a mix of business and non-business activities). For our purposes, place of supply is generally where the customer is based/registered. For EU business customers, proof of trading must always be requested preferably VAT registration. Notice 741a

 

 

Client based in the UK and work done in the UK Client based in the UK but work done outside the UK Client based outside the EU and work done outside the EU Client based outside the EU but work done in the UK Services provided in/outside the UK to customer based in the EU.  [Reverse Charges apply] Notice 725
Consultancy UK VAT UK VAT No VAT No VAT Zero rated VAT
Training UK VAT UK VAT No VAT No VAT but see below* Zero rated VAT
Conferences UK VAT UK VAT No VAT No VAT but see below* Zero rated VAT
Books Zero rated VAT Zero rated VAT No VAT No VAT Zero rated VAT
Electronic Books/Manuals/Downloads UK VAT UK VAT No VAT No VAT Zero rated VAT

 

B2C supply of services (includes personal, charities***, government departments, or any other organisation with NO business activities). For our purposes, place of supply is the UK except where consultancy services are provided to a customer based/registered outside the EU. Notice 741a

 

 

Client based in the UK and work done in the UK Client based in the UK but work done outside the UK Client based outside the EU and work done outside the EU Client based outside the EU but work done in the UK Services provided in/outside the UK to customer based in the EU. Notice 725
Consultancy UK VAT UK VAT No VAT (s12.1/2) No VAT (s12.1/2) EU VAT may apply
Training** UK VAT UK VAT No VAT UK VAT

 

As above
Conferences UK VAT UK VAT No VAT UK VAT As above
Books Zero rated VAT Zero rated VAT No VAT No VAT Zero rated VAT
Electronic Books/Manuals/Downloads UK VAT UK VAT No VAT No VAT EU VAT may apply

 

* Services relating to an event or physical performance: B2B follows the general rule, however, the company organising the event must account for VAT on admission fees and ancillary services if organised in the UK.  For B2C, all services are taxable where the event takes place. (s9)

**Training provided to non-business overseas governments in the UK may be zero-rated if proof is obtained. (s16)

***Services to charities can be zero-rated but proof of charitable status must be taken and recorded.

About Phoenix

Accountant | Tax Specialist | Dreamy Entrepreneur | Blogger

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