VAT Application for an event in UK

Hi, We have operated an event in July and we have received the invoice from the agency with VAT included. We are based in South Korea and did an event in UK and we have used agency for the rental items (e.g. PA System, buggies, TVs, Generators etc.) Since, we are based in South Korea, are we still entitled to pay for the VAT? I understand, if the invoice is directly going to an address to South Korea, we are not entitled to the VAT. According to ACCA , "place of supply is wher the customers belong" and in this case, it should be South Korea. In this case, are we still enetitled to the VAT?

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Place of supply is usually where the customer is - you are correct - but you also need to consider "use and enjoyment rules" see link here, section 13 https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a#sec13 "The use and enjoyment rules are intended to make sure taxation takes place where services are consumed where either services are consumed within the UK but would otherwise escape VAT, or they would be subject to UK VAT when consumed outside the UK. Effective use and enjoyment takes place where a recipient actually consumes services irrespective of the contractual arrangements, payment or beneficial interest." Read the guidance and see if that applies to the purchases you have made. If the VAT has been correctly charged, you should be able to reclaim this VAT directly from HMRC by submitting a claim into HMRC, link and guidance here https://www.gov.uk/guidance/vat-refunds-for-non-eu-businesses-visiting-the-uk If the VAT has been incorrectly charged then you can refer the agency/supplier to the guidance in HMRC Notice 741a (as per first link) and ask them to reissue the invoices without VAT (outside the scope of UK VAT).

Hi,

If you are receiving a hire service from a supplier in the UK then General Rule Service then the Place Of Supply would normally be where the business customer belongs.

However under the Use and Enjoyment Rules the Place of Supply would move to actually where those hired goods are used and so the UK supplier would be required to charge UK VAT

Please see the guidance below:

Place of supply of services (VAT Notice 741A) - Use and enjoyment

Thank you.