VAT for events held in the UK for US companies

We organise networking events in the UK & have contracts with US companies that attend the events. They essentially pay for to sponsor, advertise & speak at our events. Some of the US companies may have a UK branch (not necessarily incoporated), or remote staff working in the UK. Our query is do we need charge VAT to the US companies in respect of these sales if the events are held in the UK?

Hi Rakhee Gudka,
As the supply is a business to business supply then the Place of Supply of the service would normally be where the business customer belongs.
So if the customer belongs in the UK then the supply would be Vatable in the UK and if the customer is overseas then the supply would be Outside The Scope of UK VAT.
Please see
4. Establishment most closely concerned with the supply
6. The place of supply rules for services
If you are charging admission for an event then the Place of Supply rules are different and the supply would be Vatable in the UK regardless of where the business customer belongs.
Please see below:
9. Services supplied ‘where performed’
Thank you. 


 

Thank you however I do require some further clarification. The US company where the HQ is based, has signed the contract for all worldwide events including the UK events. They have a UK incorporated subsidiary and it is staff from here that will be hosting the UK event. Any business they win from the UK event will go to the UK company. However main directors are based at the HQ. How do I determine the establishment connected closest to the supply, as it difficult to tell from the HMRC guidance provided? If it is the UK, do I invoice the UK entity or add VAT to the invoice addressed to the US company?

Hi Rakhee Gudka,
Unfortunately, HMRC cannot tell you who your customer is in this transaction. Only you will know this. There are some common indicators to point to who your customer is covered the VAT Notice 741A which it appears you have already referred to but I will link again for clarity. 4. Establishment most closely concerned with the supply.
Thank you.