How does vat work in France?

How will VAT work If providing services in the UK to a US company?

• For this example Let say I run a VAT registered(cash account), LTD company, called ''Services LTD''. a company contacts from America (''US company'') asks me to provide equipment and services for an event in the UK. I hire the equipment from a UK base, VAT reg LTD company called ''Video LTD'. the kit costs £10,000(Ex VAT) to hire and I am hiring it to ''US company'' for £12,000 (Ex VAT) This is how I see it working, is the following correct? My company pay Video LTD £12,000 (Inc VAT) US company Pay me £12,000 (Ex VAT) As they are american, I cant charge them vat, yet am still liable to pay VAT for the hired equipment, when I hire it. so I now break even but am now £2,000 in credit from HMRC? Is this correct? If so how quickly would I be able to claim this money?? Thank you for your help, its hard to figure this stuff out without being an expert!

• Answer:

  The service is provided in the UK and therefore is liable to VAT regardless of the purchaser.