James Gales

Hi, I am an offshore consultant to a BVI company that owns land in the UK. There has been a commercial claim defended by UK Lawyers who have correctly removed VAT due to HMRC 741A (Place of supply). The UK Lawyers engaged Counsel to advise and I think Counsel may have charged VAT. My Belief is that Counsel’s fees are a recharge instead of a disbursement under VAT notice 700. Therefore Counsel’d fee in my view should be a part of the solicitor’s own supply to the BVI Company and as a consequence exempt of VAT charge as the Place of supply is BVI. Is this correct? For the sake of context there was no claim on the land itself.