Unusual VAT Issues

If you work in the entertainment industry as an actor or performer then you may have some rather unusual VAT issuentertainment VAT advicees.

Your initial question maybe whether you need to be VAT registered. You may be better off being so but will the administration burden outweigh the benefit ? If you must be VAT registered should you use a special scheme such as the flat rate scheme or annual accounting ?

Then there are questions over VAT recovery.  Those working in the entertainment industry can make some rather unusual purchases and HMRC can challenge whether the VAT is partly of fully recoverable. Fortunately you can normally obtain at least partial VAT recovery.

You may work abroad or for foreign companies. But does this mean you don’t need to charge VAT ?

Agreements with agents are not always very clear. Because of this it isn’t always obvious where VAT responsability lies. Unfortunately there are similar issues with agreements signed directly with venues such as theatres.

I have prepared a brief guide to some of the VAT  questions I have been asked by actors, performers and entertainers. See: Performers VAT guide

Questions I have advised upon

I have experience of  advising on many VAT issues relating to the entertainment industry. These have included :

  • For venues:  Determining the VAT liability of ticket sales. Arguing for and against the VAT cultural exemption.
  • Maximising VAT recovery for culturally exempt venues. Devising special recovery methods.
  • Advising whether VAT registration is necessary or beneficial
  • Advising on where responsibility to account for VAT rests. Is it the performer, agent or venue.
  • Successfully arguing that VAT is recoverable on unusual expenditure and special equipment purchased by actors and stunt performers.
  • Advising on disputes with HMRC.
  • Assisting with VAT tribunals and appeals
  • Getting agreement for the VAT treatment of blank tape levy and other non standard royalty payments.
  • Advising on the correct place of supply.
  • Advising whether VAT is chargeable on particular supplies
  • The consequences of Brexit

Get in Touch

If you have any questions about how the VAT rules work then get in touch.  I will not charge for an initial chat and if your question is answered in HMRC guidance I will let you know. For examples of what my clients say about me see  here