VAT On Services To EU - B2B vs B2C?

Hi, I'm selling a coaching certification programme (non-digitally delivered service) and a potential client is based in the EU. The course is for experienced coaches, to improve their skills and grow their business. So I would consider it B2B. It's not for personal use. It's about gaining skills for them to find more clients. But this client isn't VAT registered in his home country. He is working as a 'sole trader'. My question: do I have to count this as B2C and charge UK VAT, because he is a sole trader with no VAT number? Or does the fact this is a business-growing course mean it's B2B and I don't charge UK VAT, whether or not he is registered for VAT in his home country? Thank you. 

Name removed admin .

Hi,

The company, and, or sole trader who you are providing a service to does not need to be VAT registered in order to treat them as a business. Please see section 6.3 of the following guidance:

https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#sec6

If they can provide you evidence of being in business then you will treat this as a general rule supply and will be outside the scope of UK VAT.

Thank you.

Hi, Thank you for this. However, asking them for their fiscal documents is totally unrealistic, in these identity-theft-aware times. Also, the sale happens automatically, online, rather than via invoice. So there's no point in the process to ask them for evidence of being a business. [Note: it's not a digitally delivered service, so EU Digital VAT doesn't apply. It's just the contracting of the service that happens online, automatically] When will the guidelines be updated to reflect the way the world has run for the past decade, rather than assuming that all B2B transactions require emails and invoices? What do we do until then, please? Thank you, Clare

Hi,

It is always important to get the business or non business status of customers where you are able to. However we are not sure in your case if this will be relevant for the type of service you are delivering.

If you are providing a service of education and, or, coaching to individuals overseas then the place of supply would normally be where the customer belongs. You can see the guidance here:

VATPOSS08500 - Where performed services: education services

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

Thank you.