Performing Abroad / Attending a Workshop Abroad

The first thing that needs to be considered is whether the customer (the client or organiser) is a private individual or a business person.

It is important to identify:

Whether this is a B2B (business to business) transaction – a taxable person supplies services to another taxable person; in such instance, the transaction is liable to tax in the country where the services are physically carried out. If the services are provided to a non-payer of VAT, they must be taxed in the country where the supplier of services has his or her registered office.

The rule about the place of supply applies to any cultural, artistic, education, entertainment or other similar activities for non-business customers or for customers who are not VAT payers. In other words, the duty to pay VAT arises in the territory where the service is physically carried out.

Example

A Czech rock band performs at a private party in England.

The rule about the place of supply applies whenever the customer is a private individual. The place of supply in this example is England. As a result, the Czech band must charge VAT under English law to its English customers and pay the VAT to English tax authorities. In exchange, the band may deduct any input tax paid for hotel accommodation or travel expenses, for example. It is advisable to engage a tax advisor to handle the paperwork.