VAT rules when supplying digital training services outside of UK

Hi, I'm working on a project for a UK based company who delivers non-government funded vocational training in person in the UK and online via pre-recorded and live webinars to both customers and businesses. I understand that VAT is charged on all in person courses and to all UK based customers but I'm unclear when to charge VAT when supplying digital services outside the UK. Can you clarify - if the online sessions are pre-recorded then no VAT is charged to overseas B2B and B2C customers - if it is a live webinar then VAT would be charged to all oversea customers - what are the VAT rules are for overseas B2B and B2C customers when they sign up for a hybrid course (the learner completes the theory element of the course via an online training platform which is graded by UK based lecturers/assessors and is required to attend two in person training events in the UK) I have read through the guidance around this and can't reach a definitive answer. Many thanks

Hi.

The guidance which will decide whether VAT is charged for these services overseas, both to businesses and consumers is the place of supply of services rules. If these services are supplied to other businesses then the general rule would cover these supplies and so should be outside the scope of VAT. You can see guidance here:

The place of supply rules for services

If services are provided to consumers overseas then it is important to determine whether the supplies are digital in nature. You can see more information here:

Defining digital services

Place of supply of educational services

If the supplies are digital in nature then the place of supply can be found here:

The place of supply of digital services

If the supplies are not digital in nature then normally the place of supply would be where the service is performed

However, where educational services are supplied when the supplier, the tutor, is in one country and the customer is in a different country, the supply is not regarded as a where performed service. That is because the supply does not constitute a physical performance and has the added difficulty of deciding in which country the place of supply is. That does not mean that the supply is not one of education, it simply means the supply is not covered by this rule. You can see guidance here:

VATPOSS08500 - Where performed services: education services

Therefore if the supply is made to consumers overseas then the place of supply is covered here:

B2C services of a professional, technical, financial, intellectual or other intangible nature supplied to customers outside the UK

Thank you.