VAT & Italian Conference

[Marky65]

Hi

I have a client who is going on a conference to Rome (lucky bugger) in September and his invoice from the organiser includes vat at 20%. Using Sage I was thinking of using VAT code T8, is this correct, and do I need to complete any other reporting, ie intrastat.

Thanks for your help

Regards

Mark

[Phil B]

Firstly Intrastat will only apply if the business is shipping goods (not services) over £270,000 per annum – a conference I would suggest would not be included within Intrastat regardless.

I think I’m right in saying that T8 within SAGE does not hit Box 9 on the VAT return which again is for goods purchases only (you need to check the Configuration settings under the “settings” Tab within SAGE.

If you client is VAT registered though why is the Italian company not Zero Rating the VAT? He needs to supply his VAT number.

Phil B

[David Griffiths]

First point is that you cannot recover this VAT through your normal quarterly VAT return. That is only for UK input tax suffered.

There is a mechanism to recover certain VAT suffered in other EU states by applying directly to the state concerned. I understand that it's a long winded process, particularly in Italy, so you will have to decide if it's worthwhile.

My understanding is that the Italian company would only be able to zero rate the invoice in the way that is suggested if it related to goods sent from Italy to the UK. The rules relating to services and place of supply are different, and have recently been changed. This is a supply of services in Italy, and therefore I think that the host company has correctly charged Italian VAT.

I'll hold my hand up and say that this is one of those areas where I frequently take outside advice, and am happy to be corrected by one of our resident VAT specialists

[yorkshirejames]

Firstly Intrastat will only apply if the business is shipping goods (not services) over £270,000 per annum – a conference I would suggest would not be included within Intrastat regardless.

I think I’m right in saying that T8 within SAGE does not hit Box 9 on the VAT return which again is for goods purchases only (you need to check the Configuration settings under the “settings” Tab within SAGE.

If you client is VAT registered though why is the Italian company not Zero Rating the VAT? He needs to supply his VAT number.

Phil B

Conference Services is indeed a special case. Based on the information given, I agree fully with David G (and endorse his recommendation to get proper advice).

Obviously if we are talking an invoice for a few hundred pounds then just suffer the Italian VAT, on the other hand if this is a few thousand please PM me and I will either assist myself or put you in touch with someone who is better placed to help.

[Ader]

Just for the record, I agree with the above and that VAT should be charged on the Italian conference - Conferences don't fall within the list of services that comes under the zero rating rules for certain international services - And in fact there is a spcific rule in a statutory instrument which means conferences are subject to VAT where the conference is held.

In theory if you're reclaining under €500,000 then Italy has a fastrack procedure for VAT reclaims under the 8th Directive - But it doesn't always work - plus from memory I think you have to post up guarantess to the Italian tax authorities - And for €480 VAT it may not worth it.

If you don't use fast track, the Italians are notoriously slow - I had one Italian reclaim that took over 3 years - although I think that was partly becasue the local VAT agent I used was crap TBH.