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Posted Thu, 26 Nov 2020 19:33:39 GMT by David Cooke
I have a - currently not registered - client company who is negotiating a contract to supply educational services in Saudi Arabia (the client's staff will visit the country to deliver the courses), but whose customer is based in the UK. Are such services chargeable to VAT?
Posted Wed, 02 Dec 2020 09:48:21 GMT by HMRC Admin 5
Hello.

You will need to establish who your customer is first (are they a business or consumer) and where they belong,
I will refer you to VAT notice 741a sections 3 and 4.
Once you determine where your customer belongs you then should refer to section 6 and 9 of 741a this will help you decide the place of supply of the services.
Place of supply of services (VAT Notice 741A)
If you determine that the place of supply is outside the UK, then the service will be outside the scope of UK VAT.
If after looking through this guidance and you determine that the place of supply is the UK, then VAT will normally be chargeable at the standard rate of VAT.
As you have mentioned that it is education services you should read through VAT notice 701/30 to see if your service can be exempt from VAT.
If after reading through this notice and your business doesn’t fall into any of the categories, then you will be required to charge VAT at the standard rate of 20%.
Education and vocational training (VAT Notice 701/30)

Thank You.

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