Is VAT charged on fee for performing abroad?
Q. I am the accountant of an opera singer who is VAT registered in the UK but spends a lot of time performing at concerts abroad. Most of her work is for production companies that are based in the country where she performs, so VAT is not an issue because her customer applies the reverse charge. But she has been asked to sing at the birthday party of a fan in Germany, who is a private individual and not registered for VAT. What is the VAT position with her fee?
A. There is a list of “performance-related” services where the place of supply is deemed to be where the performance takes place if it is made directly to the customer, i.e. B2C. These services include the services of an entertainer. So your client is making a supply of services in Germany and because she is not based in Germany, she does not get a registration threshold in that country, i.e. a zero threshold applies. She must therefore register for VAT in Germany and charge German VAT on her fee and declare this VAT on a German return. If this is her only B2C job in Germany, she can deregister once the VAT return has been resolved.
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