We have been approached by a new client who is VAT registered, and their business activity is the hire of audio visual equipment. They are looking to invoice a Canadian music company for the hire of sound and lighting equipment.

The Canadian company does not have a presence in the UK and the equipment will be hired for a period of two weeks whilst the singer tours over here. We believe this is a business to business (B2B) general rule supply, therefore the place of supply is where the customer belongs and therefore outside the scope of UK vat; is that correct?