Charging VAT for OFTEC Registration outside of the UK
OFTEC are often asked by registrants and potential registrants about the requirement to pay VAT for OFTEC registration.
Please see extracts from HM Revenue and Customs letters below: The extract details that VAT is chargeable at standard rate on the supply of OFTEC registration to all member states of the EC.
The last paragraph gives some guidance on reclaiming the VAT for technicians and businesses outside of the United Kingdom.
18th July 2005
“Registration of technicians – it appears that the main benefit of this payment is to allow the technician to advertise that he is trained to a certain specification, give access to technical help and advice and allow him to self certify. It does not confer membership rights to the technician. The first premise for establishing the liability of a supply is that VAT at the standard rate should be applied except where the VAT act 1994 specifically determines otherwise. As the registration is not a statutory requirement and does not come under either schedule 8 or schedule 9 or the VAT act 1994 the supply is standard rated. The payment of the business that employs the technician will also be standard rated.
This also applies to the registration of technicians in other member states as the basic rule for supply of services applies (registration not being covered by any of the standard rules) unless the registration has become a statutory requirement. I can confirm that the guidance given above is still relevant to you and you would therefore charge VAT at the standard rate on the registration charge regardless of where your customer is based – Section 3.1 of Notice 741 ‘place of supply of services’ refer”
With regard to customers reclaiming this VAT, I would advise you to refer them to Notice 723 ‘Refunds of VAT in the EC for EC and non EC businesses’ which gives advice on how businesses can reclaim VAT that they have incurred in the United Kingdom.”