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Posted Mon, 08 Jul 2024 12:46:45 GMT by Ruta Svo
Dear all, our company is EU-based (VAT registered in the country of establishment). The supplier based in UK (UK VAT registered) has issued invoice for video making (fillming promotional video) with UK VAT. Please advise if this is correct approach from UK VAT perspective. Shouldn't it be that place of supply of this type of service is where the customer is (Europe). Thank you.
Posted Wed, 10 Jul 2024 09:33:28 GMT by HMRC Admin 21 Response
Hi Ruta,
Please refer your supplier to this guidance: Place of supply of services (VAT Notice 741A) normally VAT would not be charged and the VAT would be accounted for under the reverse charge by the customer.
Thank you.
Posted Wed, 10 Jul 2024 13:21:56 GMT by Ruta Svo
Thank you for the clarification. And would it change the situation if the video filmed in UK, would be displayed only in UK territory (video ads)
Posted Thu, 11 Jul 2024 11:10:03 GMT by HMRC Admin 8 Response
Hi,
Please refer to notice 741a regarding the place of supply of services:
Place of supply of services (VAT Notice 741A) Section 6 provides guidance on the general rules. 
he B2B general rule for supplies of services is that the supply is made where the customer belongs.
Section 6.4 lists exceptions to the general rule that you need to review to see if any apply to your situation.
In particular check section 13 regarding use and enjoyment rules as this can move the place of supply from where the customer is located and discuss with your supplier which guidance they have referred to in making their decision:
Use and enjoyment
Thankyou.

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