VAT on services received from overseas

VAT on services received from overseas

European Court ruling which may impact your charity

Robert Warne, Partner, Head of VAT and Customs Duty services
26/03/2021
VAT on services received from overseas

The European Court has ruled against Wellcome Trust (WT) in respect of whether the charity needed to account for VAT on reverse charges or not.

This decision was made in respect of services WT received from abroad in relation to their non-business activities.

What does this mean for charities?

Entities who are registered for VAT will have to continue to account for VAT under the reverse charge mechanism when they receive services from abroad, on both their business and non-business activities. These services would be subject to the standard rate of VAT if they had been received from a UK supplier.

The judgement placed some emphasis on WT being a taxable person (WT being a VAT registered entity). However, the decision could impact entities who are not presently VAT registered who receive services from abroad and have any business income.

How we can help

If you would like further information on the decision made and how it impacts your charity, please get in touch with Robert Warne or your usual Crowe contact.   

Contact us

Robert Warne
Rob Warne
Partner, Head of VAT and Customs Duty services
London