VAT Overseas – Executors in different countries

[Sarah]

Afternoon all,

We’re dealing with an estate. There are two executors. One belongs in Australia and the other the UK. When issuing the bill, do we charge VAT? I can’t see any guidance out there.

Thanks in advance.

[Darren Whelan]

Hi Sarah,

The Place of Supply Rules don’t really go into any detail around this but I can confirm from previous conversations with HMRC, they would expect the work to be apportioned and the invoice to reflect that. In your situation, you’re acting for two executors where one is in the UK (subject to UK VAT) and the other outside of the UK (Outside the Scope of UK VAT) so the invoice/bill should be reflect that and be split i.e. 50% taxable at standard rate and the other 50% as Outside the Scope of UK VAT. I’d recommend you issue two separate invoices in this situation for clarity.

VAT is always fun – NOT!

Hope this helps

[Graham]

Hi Darren,

just further on this, is the residence of the deceased irrelevant? For example I am looking a file where the deceased was a UK resident but the sole executor is based in South Africa – should our bills be out of scope vat?

Thanks
Graham

[Author]

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