Readers’ forum: Is VAT due on equipment sale?

One of my clients received an order from a UK production company for the supply of electrical/music equipment relevant to a TV drama it is filming.

The usual procedure is for my client to order the goods from its parent company in the US; import the goods to the UK; and then sell them to the UK customer for a profit. However because of filming deadlines the production company agreed with the US company that it would be declared as the importer when the goods arrived at Heathrow so the customer was the importer of record and paid £15 000 VAT to HMRC when the goods arrived and £3 000 customs duty.

The problem is that my client has now invoiced the production company for the equipment charging £75 000 plus VAT as a UK sale but the production director claims that the invoice...