VAT Threshold and Overseas Music Broadcast Royalties

Hi I live in the UK and I compose music for advertising. The music is broadcast globally on TV. When it is broadcast it automatically generates a Performance Royalty which is collected by Performance Rights Organisations based in each country. Each of these organisations pass the royalties they collect to the UK based Performance Rights Organisation (called PRS). PRS in turn pass the royalties on to me. I am self employed and my total receipts from royalties have just gone over the VAT threshold. The majority of these royalties are generated by broadcasts outside of the UK. I am unsure as to whether the overseas royalties count towards the VAT threshold as they are generated outside of the UK, collected by the foreign Performance Rights Organisations and only then forwarded on. Please advise. Many thanks

Hi ,
 

The question of whether your supplies are taxable supplies for VAT Registration purposes is governed by the Place of Supply Rules. If the company you are receiving the royalties from(your customer) belongs in the UK then these will be taxable supplies in the UK and if your customer is outside the UK then the supplies will be Outside The Scope of VAT and wouldn't go towards your taxable turnover for VAT Registration purposes. Please see the guidance below: Place of supply of services (VAT Notice 741A) . Thank you .