The Essential Guide to the European System of VAT

The Essentials of VAT
The Essential Guide to UK VAT and International Trade
The Essential Guide to UK VAT and International Services
The Essential Guide to UK VAT for Purchase Accounting Staff

The Essential Guide to UK VAT for Sales Accounting Staff

The Essential Guide to Financial Accounting Procedures and Controls

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No change to the place of supply rules for seminars

European VAT Seminar - £225 per personThe place of supply rules regarding the presentation of seminars make it necessary for training companies to register for VAT in each of the EU countries in which they present seminars. HMRC have been working hard to convince the other member states of the EU to make the supply of seminars fall under the general rule for the business to business supply of services from 1 January 2011. This would mean that a UK company presenting a course in Germany to a German business would no longer need to register in Germany; instead, the customer would apply the ‘reverse charge’ and account for VAT on its own return.

Many countries considered it would make it an administrative burden if seminar providers had to distinguish between ‘business to business’ customers and ‘business to consumer’ customers. If training is provided to a non-business customer from 1 January 2011, the supplier must charge VAT in the country in which the training is delivered.

The outcome is that, from 1 January 2011 seminars which are not part of an ongoing supply of education will be taxed in the country in which they are delivered, for both in-house and public seminars. The training provider will, as now, be required to register in that country in most cases.

This acts as a trade barrier because it is not always practical for seminar providers to register in each of the countries in which they present seminars. We would present The Essential Guide to the European System of VAT throughout the EU, if the general rule for 'business to business' supply of services were applied to business seminars. Thankfully we have the option of delivering our seminars live and online from our studio in the UK.

Increase in VAT - live online seminar a huge success...

The implementation of the increase in the standard rate of VAT presents challenges and significant costs to businesses both large and small.  While HMRC have published guidance on the changes and software providers have made subtle system changes, it is the practical application of the time of supply rules that can result in errors.

On the 16th December we ran a very successful live online training seminar to help organisations implement the increase. The response to this initiative was tremendous and very well received by the 114 people who attended. The training was seen as timely, relevant and convenient. It was delivered direct to delegates’ offices or home computers, meaning they did not have to travel during this period of adverse weather.

Our live online seminars are very successful largely as a result of their interactive nature.  These seminars highlighted the fact that many people had very relevant concerns and questions to ask about the change. Our presenters dealt with a tremendous volume of varied questions both online and by email, and also via our discussion board. The questions are so relevant to businesses that we have posted some of them on the UK Training website.

...any suggestions?

We are expecting the success of these short seminars to provide a demand for updates on legislative changes and practical business issues.  We invite you to suggest areas that may be of interest to you by sending a short email summarising your idea.

A final word on VAT at this festive time.

The rules for input tax recovery on entertainment often lead to confusion. Staff entertainment is not covered by the block on recovering input tax on entertainment. We would not like you to spoil the office Christmas party by you not maximising your entitlement to recover the input tax. But do take care, the definition of employees for VAT purposes does not include spouses or former employees. If your party includes guests you must remember to apportion the cost and only recover the input tax relevant to your staff. That said have a good party and a Merry Christmas.

Stephen Smith
Managing Director
UK Training (Worldwide) Limited


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