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How is the supply of self-designed photobooks treated for VAT purposes?
PhotoCo is a UK company offering their own websites that enable customers to upload photos digitally and design photobooks. Commercially PhotoCo is merely the platform. Once paid for the order is passed to a third-party UK supplier which prints the photobook and delivers the finished product to UK customers. PhotoCo is charged by the supplier for the cost and keeps the differences between cost and amount charged to the customer as its profit.
PhotoCo also has a website targeting customers in Russia. The procedure is similar but orders made through the Russian websites are processed by a Russian supplier which prints and delivers the goods to customers in Russia.
The supply made by PhotoCo appears to be a ‘single supply’ of goods and a service the supply of which can be said to be ancillary to the main supply of the goods. Therefore the...
