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Posted Wed, 25 Sep 2024 12:58:38 GMT by Jessica
The UK company I work for buys sheet music from a business in the US. As sheet music is subject to 0% VAT in the UK, does that mean there is no VAT to reverse charge? We also pay a performance royalty fee to a US company. Is that subject to the reverse charge at 20%?
Posted Wed, 02 Oct 2024 09:36:52 GMT by HMRC Admin 18 Response
Hi,

 Please refer to notice 741a section 5 for guidance on accounting for VAT using the reverse charge.

Reverse charge

The reverse charge is applicable to supplies of services not physical goods that are imported into the UK.

Thank you.

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