VAT when travelling overseas

[Bumbling Amateur]

If my VAT registered business sends a contractor overseas it will charge a day rate during his time overseas which is exempt from VAT (beyond the scope of VAT). What about the days the contractor travels overseas and returns from overseas?

I'm guessing the day of travel is VAT exempt because he would be out of the country at midnight but on the return day the day rate would be subject to VAT because he is in the UK at midnight on the day of travel.

 

[DWS]

Have you read the VAT place of supply of services?
You should not be guessing in my opinion

 

[Bobbo]

Why is the contractor going overseas? Where is the customer? What is the nature of the services?

I'd suggest there is no distinction between days overseas and days travelling - either the entire supply is outside the scope of VAT (which is very different from VAT exempt) or the entire supply is VATable.

 

[Financial-Modeller]

Its really a question for your accountant OP, but pending clarification from one the accountants on here, my guess would be that you charge your UK customer a VAT-inclusive price for services irrespective of how those services are delivered and/or from where.

Whether your contractor charges you VAT depends on their VAT status and the nature of the service provided to you.

 

[Bumbling Amateur]

Have you read the VAT place of supply of services?
You should not be guessing in my opinion

I have now (and also the VAT Notice 700 for good measure). I can now say with some confidence that whilst my company belongs in the UK its place of supply in this instance is outside the UK and therefore outside the scope of VAT. So for these reasons I'll not be charging VAT on my invoice for the supply of a contractor or his expenses even if incurred in the UK.

Thanks for your reply which pointed me in the right direction.

 

[Bumbling Amateur]

Why is the contractor going overseas? Where is the customer? What is the nature of the services?

I'd suggest there is no distinction between days overseas and days travelling - either the entire supply is outside the scope of VAT (which is very different from VAT exempt) or the entire supply is VATable.

He's going overseas to provide technical consultancy to a company in the Middle East.

I must say having read the documents referenced above I agree with you. Thank you for your time.

 

[Bumbling Amateur]

Its really a question for your accountant OP, but pending clarification from one the accountants on here, my guess would be that you charge your UK customer a VAT-inclusive price for services irrespective of how those services are delivered and/or from where.

Whether your contractor charges you VAT depends on their VAT status and the nature of the service provided to you.

If I had an accountant I wouldn't be on here asking for advice!

I'm confused by your reply, and not really sure you understood my question. My fault probably.