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I have a question regarding VAT, providing services within the UK and trade with a US based organisation. Background: I will be providing educational seminars within the UK on behalf of a US-based educational organisation. At the moment, students pay the US org. and the US org. pays me (as the teacher) direct. I do not charge them VAT as they are non-EU based. I understand there may be an issue with where the services are offered (in the UK/EU) and therefore I am looking for another solution. One option would be to charge students direct (which would require my business adding the VAT) and then paying a license fee to the US org.
I am currently on the HMRC website "Education and vocational training" - and it seems that my seminars my be exempt from VAT. In which case, it would seem best to charge students direct (without adding VAT) and then pay a licence fee.
I am trying to avoid charging extra for these seminars, but obviously wish to remain compliant! And I am obviously a little confused...Is there a solution that would be beneficial?
I am a little confused - if I invoiced individuals direct for educational seminars held in the UK, would this service not be VAT-exempt?
OK, one more question - just to refine this!
The customer is a fitness consultant / personal trainer paying for education to enhance their business, does this constitutes a B2B relationship?
The courses are delivered in the UK and I am based in the UK, but I guess the same concept applies.
If the courses were delivered to 'exercise enthusiasts' then they would not have a business, but as they are delivered to personal trainers, they do have a business - and therefore I don't have to charge VAT.
Which clears it up!