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Posted Wed, 11 Dec 2024 13:43:33 GMT by crimsonsun
I was recently charged VAT on VAT exempt digital art commission, all the advice I can find tells me to take it up with the company, which I did and they essentially said they don't care, they charge VAT on all items regardless of exemption. Do I have any options?
Posted Fri, 13 Dec 2024 09:09:51 GMT by Jay Cooke
Why would digital art be exempt? *exempt is a specific definition in VAT legislation, it is reserved for services like welfare, healthcare and education. It might qualify to be zero rated, but depends on what you mean by "art" - digital art will be a digital service, digital services are usually standard rated unless they are zero rated by virtue of them being newspapers or books. If you are a consumer, then I'd expect digital art to be standard rated, if you are a business then I'd expect the sale to be outside the scope of VAT but with the business (you) applying reverse charge to such purchase. If the supplier has charged UK VAT and their invoice shows a UK VAT number, then there is nothing HMRC can do, this is a contractual dispute between customer and supplier. If you believe the supplier is wrong then your only recourse is with the supplier. Details on digital services :- https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers
Posted Fri, 13 Dec 2024 10:21:19 GMT by HMRC Admin 21 Response
Hi crimsonsun,
If you believe that a business is charging you VAT where it should not be charged then it would become a third party dispute between yourself and the supplier.
I would recommend asking them to refer to the guidance on our website that would confirm that their supply is being treated correctly for VAT purposes
Please see the rules regarding the charging of VAT on agent supplies:
22. Supplies made by or through agents.
Thank you.

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