We've just started running training courses at a UK client's Singapore office for our software business. As a UK VAT registered company should we be charging the client VAT on the service, as the place of supply is Singapore? We also need to claim back travel expenses (air fare) - should this have VAT added?
My personal understanding is that you shouldnt add VAT, although the singapore authorities may ask you for a Certificate of Residence form to confirm the tax status in the UK. Whilst this initially looks like its just for individuals if you contact the Corporation Tax division of your local HMRC they will provide the appropriate paperwork or stamp the form that the sinagpore authorities provide.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
If the Place of Supply is Singapore, then UK VAT will not apply, but local taxes may do so - you would need to check this out. Where you add in any expenses, then they follow the liability of the supply itself. HMRC Notice 741A, chapter 8 provides some guidance, but I'm not sure that it covers the exact scenario you describe.
Under the place of supply rules, the place of supply is that of your "customer" So look to who you are invoicing. If you are presenting courses, you may have to account for tax in Singapore (VAT and business)
I've had a situation where a UK company pays another UK company in the UK to perfrom work in a non EU country and in that scenario VAT is chargeable regardless as to the place of supply as the transaction was actually deemed completely within the UK.
As a visiting consultant not being paid in the country of supply no taxes were payable within that country.
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
