Business News
VAT - Place of Supply of Services
Changes to the VAT place of supply rules from 1 January 2011 will affect entertainment, cultural, sporting, educational, scientific or similar services which are actually performed outsdie the UK.
The changes coming into effect from 1 January 2011 apply to services which were previously taxed where performed. These now come under the 'general rule'. For example, if a UK, VAT registered pop group went on an overseas tour and employed a UK based sound engineer to accompany them, prior to 1 Jan 2011, the services of the sound engineer would be outside the scope as his work was carried out outside the UK.
Under the new rules, as his customer (the pop group) is also a UK business, the sound engineer will have to charge UK VAT. If the sound engineer was not a UK business, the UK pop group would not be charged VAT, but should account for the reverse charge on his services.
For more information please contact us.
Ibex House, Baker Street
Weybridge, Surrey KT13 8AH
Tel: +44 (0)1932 853393
Fax: +44 (0)1932 854323
email@midsnell.co.uk