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Posted Mon, 11 Nov 2024 15:19:43 GMT by sibrat
Hi, I run an online fitness/sports coaching business from Sweden. I recently got a customer from the UK. The payment platform notified me that I should register for VAT in the UK. Am I exempt because I offer sports education? Thank you
Posted Tue, 12 Nov 2024 09:18:23 GMT by Jay Cooke
Sports education is only an exempt supply, when the supply is made by a not for profit entity. A not for profit entity in the UK is usually a "Limited by Guarantee" structure which does not distribute it's profit to the shareholders but instead invests any profit back into the business, this no distribution requirement must be written into the Articles of Association (Articles of Association are part of the formation of a company under UK law and these Articles set out how the company will operate in terms of disputes with shareholders, what happens when the company is closed/wound up, etc). There is likely an equivalent of "Articles of Association " in Swedish law, which I think you call "bolagsordning", but here is the link to HMRC's guide on sports exemption https://www.gov.uk/guidance/sport-supplies-that-are-vat-exempt-notice-70145 and look at section 2.2 and 4 which detail when the sport exemption applies. If you believe you are eligible for sporting exemption then you will need to liaise/convince/inform the payment platform.
Posted Wed, 13 Nov 2024 09:27:40 GMT by HMRC Admin 21 Response
Hi sibrat,
If you are an eligible body providing education then your supplies would normally be exempt from VAT.
Please see the guidance below:
4. Eligible body status.
However if you are providing digital services to a UK customer then this will be a vatable supply at 20%.
Please se the guidance below:
Place of supply of educational services.
The place of supply of digital services.
Thank you.
Posted Wed, 13 Nov 2024 10:44:09 GMT by sibrat
Thank you for the reply and the links. I am not an eligible body. However, the service I provide (online coaching) isn't covered by 'electronically supplied' rules because there's no automation or pre-recorded content - it's live coaching, most similar to a live webinar. "Education, training, or a similar service delivered by a person over the internet or an electronic network (such as a webinar), is not considered to be an electronically supplied service because an actual person is involved in the delivery. " Therefore, the place of supply for my B2C service is Sweden according to 6.2 here: https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#sec6 Is my interpretation of this correct? Thank you again for your assistance!

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