UK-EU VAT on supply of services for event in the UK

Goodmorning, We are an Event Production Company based in Italy and we are organising a private event in the UK. We have asked a local UK company to supply for a temporary truss structure, including transportation to/from location and workforce for set up and dismantling. Transportation and workforce represent more than the 50% of the total of the quotation, while the rest is the cost of the material they are providing for the structure. We have asked not to be charged with UK VAT, as we think in this case the B2B general rule "supplied where the customer belongs" should be applied but they claim that this would go under the special rule for hire of goods. How can this be defined? Could two invoices be done, one for the cost of the material with VAT and one with the cost of transportation and workforce without VAT? Thank you in advance!

Hi.

In order for the Place of Supply Rules to be applied correctly the supplier will need to accurately define the services being supplied and then establish the Place of Supply treatment.
If the supplier has judged that they are supplying a hire service then this would initally come under the General Rule of Services.
However if the services are used and enjoyed in the UK then the Place of Supply will move to the UK.

Please see the information below:

Place of supply of services (VAT Notice 741A): 6. The place of supply rules for services

Place of supply of services (VAT Notice 741A): 13. Use and enjoyment

The supplier would also need to establish whether a single supply or a mutiple supply is taking place in order to decide the correct VAT liability.

Please see below:

VATSC11113 - Supply: Single and multiple supplies: HMRC’s approach: The general approach

Thank you.