1. What are (in short) legal obligations to declare and pay VAT for companies in UK (monthly, quarterly paiements/declarations...)?

  2. Is the cultural industry a special case (selling concerts, charging commissions to artists)?

  3. Assume a firm in a European country (e.g. France, Germany...) pays an invoice including VAT to some private firm in UK. Are overseas paiements a special case? If yes, what are the differences with the nominal case?

  • 2
    I'm voting to close this question as off-topic because this is not about personal finance
    – Dheer
    Jun 13 '16 at 16:19
  • 1
    This doesn't read as a personal finance question. Could you find a way to reformat it to see how it would pertain to an individual rather than a company?
    – BobbyScon
    Jun 13 '16 at 16:20

Your answer will need loads of information and clarification, so I will ask you to visit the VAT and have a peruse.

1) Obligation is for you to find out the correct rate of VAT, charge and pay tax accordingly. You can call up the HMRC VAT helpline for help, which they will be happy to oblige. Normally everybody pays VAT every 3 months or you can pay once in a year.

2) Depends on your annual turnover, including VAT. Less than £150000 you join the Flat rate scheme. There are schemes for cultural activities. Might be good to check here on GOV.UK.

3) If you pay VAT in EU countries, you can reclaim VAT in UK. You need to reclaim VAT while filing in your VAT returns. But be careful about your receipts, which can be checked to verify you are not defrauding HMRC.

The basic rule is that B2B services are, as the name suggests, supplies from one business to another. And, subject to some exceptions, are treated as made where the customer belongs. No VAT is chargeable on B2B supplies to an overseas customer. But where you make a B2C supply, VAT depends on where your customer is located:

1) if they are outside the EU, you don’t need to charge VAT

2) if they are located in an EU country, then you must charge VAT.


All in all keep all records of VAT charged and paid to satisfy the taxman. If the rules get complicated, get an accountant to help you out. Don' take chances of interpreting the law yourself, the fines you might pay for wrong interpretation might be a deal breaker.

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