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bigduckontax, Accountant
Category: Tax
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We are doing a product launch /press and a promotional

Customer Question

We are doing a product launch for media/press and a promotional 'event' for in the UK for a US registered company. (This is strictly business to business - nothing for the general public). Are these sorts of services Vatable because the promotions take place in the UK or is the place of service the US and it is a US company?
Submitted: 1 year ago.
Category: Tax
Expert:  TaxRobin replied 1 year ago.
Hello and thank you for allowing me to assist you.
The place of supply is the place where a supply is made and where VAT may be charged and paid.
The place of supply of admission to an event is the where the event takes place, irrespective of where the customer or supplier is located. These include such services as:
entertainment and cultural performances - including sports events
the right to attend exhibitions, conferences, meetings or seminars
ancillary services - such as payments for cloakrooms or similar facilities
The event is in the UK so even though the business customer is based in the US, VAT would apply because the event is in the UK.
Customer: replied 1 year ago.
Relist: Inaccurate answer.
There are no entrance fees. It is not an event in that sense. I am talking about product launches for press & media. So not entertainment or cultural event either. It is similar to stunt PR - its purpose is to get editorial coverage
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

Any sales made in respect of this event would attract output tax, but as there is no entry fee these would likely be minimal; say you were selling drinks and other refreshments, for example. Any expenditure involved in running the event that bore VAT, that tax would be input tax, reclaimable on your quarterly return.

I hope that clears the air for you.

Customer: replied 1 year ago.
Relist: Inaccurate answer.
No - as I keep saying, this is for media & press. there are no sales on site. We charge the client fees for design & implementation and recharge for things like collateral materials, branded give aways, refreshments etc. Are these charges Vatable because the event is in the UK. Or as it is a US client - then no VAT
Expert:  TaxRobin replied 1 year ago.
You charge VAT because the service is in the UK.
The client is in the US but the service (the event you are holding) is in the UK.
Expert:  bigduckontax replied 1 year ago.

My answer is far from inaccurate, it merely covered the possibility of minor sales. If there are none of these then there is no output tax to be accounted for, but any input tax incurred in running the event is reclaimable.

However, if your organisation bills for items like colateral materials then such charges would be subject to VAT. If the customer was located in the States then the tax would still be chargeable, but at a rate of 0%; an export, a zero rated supply. I have consulted HMRC on such exports, actually to Switzerland, and this tax treatment was confirmed.

bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3598
Experience: FCCA FCMA CGMA ACIS
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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