Q:
Hi There
I’m carrying out an event in Abu Dhabi but unsure whether to charge VAT. The service will certainly take place in Abu Dhabi so as i understand it no VAT should be charged, but a UK based company are paying for the services so should i add VAT to the invoice?
Any help would be appreciated.
Thanks
sean
A:
Hi Sean
The basic rule is that you only charge UK VAT if the supply takes place in the UK, so you have to establish where the “place of supply” is deemed to take place.
If the event falls within certain categories as defined in the legislation and is held outside the EC, then the service is not liable to UK VAT even if the attendees are from the UK and the invoice is issued to a UK company. So you have to establish whether the event itself falls within the categories concerned to decide whether or not the place of supply is in the UK or not.
You don’t say what sort of event is involved but I assume that you’re talking about something that falls within the categories of “cultural, artistic, sporting, scientific, educational, entertainment or similar activities (including fairs and exhibitions)”. These are the categories that are listed in the legislation so you need to establish whether the event falls within these headings.
Detailed guidance about this subject is included in the VAT Notice 741 “Place of Supply of Services” on the HMRC website. In particular Section 8 deals with the place of supply of events and explains in more detail the types of events that are included and will help you to decide the place of supply of the event concerned. Here’s the link: http://tinyurl.com/ygqwatj.
One thing though is whetehr or not there is a Abu Dhabi VAT system and you should be charging local VAT because the event is held there? I’m not sure about this so I’d suggest that you discuss this with your contacts in Abu Dhabi.
Hope this helps
Marie