Readers’ forum: How is VAT accounted for on goods hired out in Italy?

I have a client who makes supplies involving boats. He has won a contract in Italy which means he will hire oars from a local supplier based in Venice and then rent them out to rowers and associations who take part in top-quality rowing events in Italy. The Italian supplier has confirmed that Italian VAT will be charged on the hirings to my client. I have two questions: 1) is there any need for my client to register for VAT in Italy; and 2) if not will she charge UK VAT on these fees as they are B2C? She is already registered for VAT in the UK.

Also if my client does not need to register for VAT in Italy can she reclaim Italian VAT charged by the Venice supplier by making a 13th Directive claim to the Italian tax authorities?

Query 20 474 –...