ASK & DISCUSS INDEX

6 years, 12 months ago - Marlom Tander

I deal with VAT in my main biz, and have had some fun issues.

My understanding is that the VAT Exempt Cert MAY be a blind ally. I doubt that you qualify. What probably matters is that the location service has provided a service where the place of provision is the UK. So VAT must be collected by the location company.

HOWEVER, while I doubt that you can avoid paying the VAT at outset, I'd certainly try and explore if you could reclaim VAT that you pay.

https://www.gov.uk/guidance/vat-refunds-for-non-eu-businesses-visiting-the-uk


The VAT Helpline

Telephone:
0300 200 3700

Textphone:
0300 200 3719

Outside UK:
+44 2920 501 261


Unlike many helplines. this one is, in my experience, staffed by experts who can answer most questions.

But the wait time can be long. Usually 2-10mins, I have waited an hour. But at the end of the hour my question was answered.

I'd ask about both Exempt Cert and Reclaim and see what they say.

6 years, 12 months ago - George Brian Glennon

Thanks Marlom, Much appreciated.

I know the VAT across these invoices is going to add up. It may be worth my effort.

I will call them.

6 years, 12 months ago - John Lubran

Marlom has given good advice. VAT in the UK is part of an EU structured system with each member state deciding its own percentages. VAT applies to those products and services provided within the EU. Products and services exported beyond the EU can either be exempt at source or any VAT can be reclaimed before leaving the EU. The issue with George's business is that those location goods and services will be used within the UK and not exported per se. For example the VAT charged on a hotel bill is not an exported item. Any good or service consumed in the EU is not exported.

Whilst government agencies, departments and officials ought to be reliable sources of information the sad truth is that they very often are the opposite. Which is why they lose so many court and tribunal cases. HMRC idoes not exist to assist people with even legitamate tax avoidance but racking up as much revenue as possible is their primary purpose; otherwise there would be no need for ithe flourishing ndependent consultancy industry.

In George's case however , I doubt that those locally consumed location VAT charges can be reclaimed.

6 years, 12 months ago - John Lubran

It ought not be ignored that there are other ways in which George can lawfully avoid VAT. It would involve setting up a VAT registered entity in the UK to provide an exported service to George. This is a very basic explanation but along the lines of what is being and has been done. If the sums involved are significant enough then it's worth it; speak to an expert above the rank of jobbing accountant. Certainly no government agency will advise on it.

6 years, 12 months ago - George Brian Glennon

Thanks John

Always like to hear your input.

6 years, 12 months ago - Marlom Tander

Actually if he sets up a VAT registered company in the Uk that company can reclaim all the VAT anyway. But this does mean talking to an accountant as there can be a right way to do things, and the way that counts as VAT fraud.

This, for example, would make a great movie :-) https://www.bbc.co.uk/news/entertainment-arts-21922456

6 years, 12 months ago - John Lubran

I don't imagine that George is going to break any laws or commit fraud in a manner anything like the scam revealed in that story Marlom.

There's quite a few perfectly legitamate options available to minimise tax and other statutory burdens. It's being done every day on an industrial scale by the 'great and the good'. It's why this governments policy is to make the poor pay for the sins of the rich. Actually it's not rocket science but I'd still suggest that a great many lawyers and accountants would not be able navigate these relatively simply pathways for reasons that if stated might embarrass to the point of offending. There's accountants and lawyers and then there's experts; they're not always the same thing.

If in doubt consult an expert.

6 years, 12 months ago - George Brian Glennon

That's quite a story Marlom. I wonder if Revenue called Jeremy Irons to verify?

Someone caught with their pants down! Pretty funny indeed.

As we're busting our ass to get it right.