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Readers’ forum: Consultancy services

19 January 2021
Issue: 4776 / Categories: Forum & Feedback
VAT dilemma on work for ski company.

I act for a UK client who provides consultancy services to a ski-slope business in Norway mainly linked to health and safety issues. We have treated the income as being outside the scope of VAT so my client has never registered. But HMRC has challenged this situation saying my client should have registered for VAT six years ago because he uses the services of a buying expert to help him – the buyer is based in Iceland.

My client has always paid the Icelandic expert two payments each year of £50 000 each. Surely there cannot be a UK VAT problem for my client because both Iceland and Norway are outside the UK? If there is a VAT issue how should this be solved? And can HMRC go back six years – I thought the time limit was four years?

Query 19 682 – Safety.


The...

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