Readers’ forum: Flat rate scheme

One of my clients has an unusual VAT predicament. He is in business as a professional singer and registered for UK VAT but recently had a telephone compliance visit from HMRC. It seems that the officer has assessed the client for flat rate scheme tax underpaid on income he received from a series of private concerts he gave last year in three different EU countries and another in Norway.

My client did not charge VAT on any of the above fees because they took place outside the UK so he excluded them from his scheme calculations. The officer does not know they took place abroad because my client’s takings records only say ‘concert fees’ – hence his assessment based on my client’s 12.5% rate for the scheme.

I have told my client that the officer is wrong to assess this VAT because the place of supply for...