United Kingdom: Court decides that acting services of UK based actress outside EU are not subject to UK VAT

UK Revenue & Customs had argued that the place of supply of acting services that were supplied in New Zealand by a UK based actress was at the address of the actress in the United Kingdom. This rule is included in Article 9(1) of the Sixth VAT Directive. According to the actress her services were covered by the exception to this rule, which applies to services relating to cultural, artistic (?) or entertainment activities and hence the place of supply would be the place where those services are physically carried out (Article 9(2) of the Sixth Directive).

The VAT and Duties Tribunal held that Revenue & Customs did not substantiate that acting services did not constitute ? cultural, artistic or entertainment activities?. Also the second argument of Revenue & Customs that a distinction should be made between acting services for a film or for the theatre was rejected by the Tribunal.

After this decision it appears to have been clarified that for UK actors who deliver acting services work outside the European Union the place of supply is not in the United Kingdom and thus no UK VAT will be due.