The attached link states that:
"If the place of supply of your service is not in the EU, then your supply of services is outside the scope of VAT. You don't have to charge EU VAT or include the sale on your VAT Return."
Which is why I am unclear. If the export of service is outside the scope, then it seems to me that the related inputs are not reclaimable. The consulting company does make taxable supplied in the UK as well. Do the "matching" inputs on the non-taxble projects get lost because of the non-taxable output?
I didn't say the place of supply is the UK - that is one of the things I am unclear about. The company is VAT registered in the UK but is providing management consultancy services to a US bank (with global operations). The company is using sub-contractors to compile a report for the US company on the jurisdictions the bank operates in. The sub-contractors bill the UK based company.
Where is the place of supply and why? Where is it stated that services provided are at zero rate? The manuals I read are saying that services provided to business customers are outside of the scope of VAT. If that is true, can the inputs be reclaimed because again the manuals even when talking about exemptions (not outside scope) talk about calculating the proportion of VAT that may be reclaimed.