Creditcontroller1
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VAT chargeable on UK placement ?
We have a customer based in Republic of Ireland with no entity in UK, but are looking for us as a recruitment agency to supply of permanent member of staff who will reside and work in the UK. The fee will be a placement fee and so we consider VAT is chargeable as place of supply is in the UK but the client prefers no UK VAT - could someone help please as we know recruitment can sometimes fall outside normal place of supply rules. A previous HMRC inspector told us if was where the candidate would be working not where the employer is based. Thanks for any assistance -
UK Agency Worker - International Client
We are a UK based recruitment agency who employs a UK based worker to carry out work for a client based in India. ( No UK office) We process payment to the UK worker and charge the client the same cost with a small margin on top. We have read the Supply of Staff Guidance notice 700/34 but don't think it's clear if VAT is chargeable. Years ago we were audited and were told Place of Supply rules meant VAT was chargeable to client in India but we think rules may have changed since then. Could anyone advise please ?