UK VAT Liability vs EU Liability - Educational Services

Hi. I wonder if anyone can help. One of the companies I look after provides online art portfolio reviews (B2C), which are streamed in real-time over Google Meet. The customer can be anywhere in the world. To the best of my knowledge, these services are treated and classified as a supply of education services. Further, as we and the customer are in different countries (for educational purposes), we are also subject to the general rule that VAT is of where the supplier belongs (for educational purposes), In short, we have to charge UK VAT to consumers as we teach from the UK, where we belong. I have found this article, which may explain it better. https://www.crowe.com/uk/insights/getting-vat-right I believe I need to be able to charge UK VAT at 20% to all customers, regardless of where they are (due to the general rule that VAT is of where the supplier belongs). My question is that STRIPE (who action the payment from the website) is insisting that I should be charging EU VAT (collecting via One Stop Shop); given my above comment, I do not think I have an EU VAT Liability, only a UK one. I certainly do not want a double liability by function of error. I would welcome any comments.

Hi.
The important aspect to establish in your supply is whether your supply is one of education or one of providing digital services.
Please see the guidance below:
Where performed services: education services
The above guidance states that if you provide your education services from the UK to a customer in another country then the services aren't classed as ' where perrormed services' for the Place of Supply Rules.
If you are providing non digital services of education to consumers in other countries then this would normally be Outside The Scope of VAT.
Please see the guidance below:
B2C services of a professional, technical, financial, intellectual or other intangible nature supplied to customers outside the UK
However if you are providing digital services to consumers in other countries then there would be an obligation to either register for VAT in the EU countries where your consumers belong or to register for Non-Union VAT MOSS scheme in an EU member state.
Please see the guidance below:
Defining digital services
Place of supply of educational services
The place of supply of digital services

Thank you so much, HMRC Admin 10, for all your comments and help; I greatly appreciate it. Having studied what you have provided information on, I believe the two services I am concerned about are 1) one-to-one (B2C) art portfolio review (1 hour in length) 2) mentoring one-to-one (B2C) (roughly 14 hours over six weeks); Both of which take place 'live' over Google Meet; and would be classified as non-digital services "educational or professional courses, where the content is delivered by a teacher over the internet or an electronic network (in other words, using a remote link)" Your above guidance states that if you provide your education services from the UK to a customer in another country, then the services aren't classed as ' where performed services' for the Place of Supply Rules. This is the part where I previously read a different interpretation. "If made on a business-to-consumer (B2C) basis it is subject to VAT where the education takes place, unless the supplier and customer are in different countries, in which case it is also subject to the general rule – that is, subject to VAT where the supplier belongs. For UK businesses supplying overseas students, this will often mean the supply is subject to UK VAT" I will, of course, use your guidance over the noted internet source. So, having concluded that we are supplying non-digital, education services, I believe I do not need to charge VAT to non UK customers as it is outside scope of VAT, and do not (as they are not digital) have to charge EU VAT via OSS (and so can deregister for this). This means I need to persuade Stripe not to charge customers (outside the UK) for VAT on our services. For the sake of clarity, I assume I am correct to still charge UK customers (B2C) VAT on all educational services. Again thank you for your help.

Hi David, 
If the services are delivered live and are not classifed as digital supplies to consumers overseas then there will be no responsibility to charge EU VAT via OSS or to charge UK VAT on these supplies.
The supplies will be Outside The Scope Of VAT.
If you make the supplies to consumers in the UK then VAT would be charged unless you are providing exempt education supplies as an eligible body.
Please see the guidance here:
4. Eligible body status
Thank you. 

Many thanks HMRC Admin 25! excellent support.

Feedback .