VAT for conference sponsorship

Our VAT registered charity offers event sponsorship packages to overseas (Europe and USA) companies. These are to sponsor events taking place in the UK. Place of supply = UK (event takes place in UK) If sponsors can optionally attend (ie exhibit including physical attendance, and / or send delegates) as part of their sponsorship package, is this a charge for admission? We assume VAT would then be applicable, (VAT notice 741a point 9.2 B2B supplies of admission to an event)? If so, do we need to include VAT on the invoice to the US / EU businesses?

Where the USA or EU business customer is paying for admission to an event, then you are correct, the admission is a "where performed" supply and is subject to UK VAT regardless of where the customer is based and your invoices would therefore include VAT. The USA customers may be able to reclaim this VAT directly from HMRC. https://www.gov.uk/guidance/vat-refunds-for-non-eu-businesses-visiting-the-uk I think be careful of "sponsorship", I see that as the sponsor having their branding/logo on course/event materials, a banner at the front of the venue. That kind of sponsorship is advertising, place of supply is where the customer is based, if customer not UK, supply is outside the scope of VAT/reverse charge.....but you then mention sponsorship "exhibit including physical attendance" which is different to "sponsorship", have a look at Ntoice 741a, section 7.5 "stand space at an exhibition or conference when supplied as part of a package with related services that enable the exhibitor to promote their goods or services (for example design, security, power, telecommunications, and so on)....is NOT a land related supply" So if it is not a land related supply and not a where performed service (because where performed services only applies to admission to an event) then the default rule applies and is supplied where the customer is/outside the scope of VAT. You need to be clear as to what you are selling, pure sponsorship is outside the scope, hiring a stand at an event is outside the scope if to a B2B customer, admission to an event is standard rated, so maybe you need to set clear rules when you are selling, either a sponsor gets x number of tickets to attend with every stand booking or else they can buy the admission at a discounted rate perhaps but separate to the sponsorship/stand package. if the package includes admission and stand space then you have to split the invoice to reflect the standard rated entrance element and outside scope stand element or invoice separate or as my suggestion, sell the package in such a way as to keep the various supplies separate.