VAT Enquiry

[JoshDraws]

Wonder if anyone can advise.

I am a Tattoo designer/illustrator.

I manually email across (therefore not deemed as digital) copies of graphic illustrations to global clients, which they then take to their local tattoo studio and have tattooed.

I am also unsure whether the income received from the EU and USA (approximately 85% of income) is outside the scope of UK VAT, and therefore does not count towards my taxable turnover for VAT Registration.

As -

B2C services of a professional, technical, financial, intellectual or other intangible nature supplied to customers outside the UK

12.2

"transfers and assignments of copyright, patents, licences, trademarks and similar rights"

In that I am allowing one time use of my 'intellectual property' i.e. my designs, for single use by the client, and if so, it is outside the scope of UK VAT.

Are these assumptions correct?

 

[lesvatadvice]

Interesting question. I am not convinced that either of the categories you mention is applicable.
The key issue is that, if your clients are private persons, your turnover is subject to UK VAT and therefore contributes to your VAT registration.

 

[JoshDraws]

Interesting question.
The key issue is that, if your clients are private persons, your turnover is subject to UK VAT and therefore contributes to your VAT registration.

I have since spoke with a VAT Preparation Service advisor and they said – because you are undertaking the work on a case by case basis, the work is completed here in the UK and would essentially be Taxable here in the UK however, the customers are outside the scope of UK VAT and therefore not taxable under UK VAT.

 

[lesvatadvice]

I have since spoke with a VAT Preparation Service advisor and they said – because you are undertaking the work on a case by case basis, the work is completed here in the UK and would essentially be Taxable here in the UK however, the customers are outside the scope of UK VAT and therefore not taxable under UK VAT.

I remain unconvinced.
However, if you have a note of the HMRC Officer's name, call reference number, time & date of call; it is reasonable to rely on their 'guidance.'