What is the place of supply for VAT purposes?

Section 7 VAT Act 1994 7(7) Goods whose place of supply is not determined under any of the preceding provisions of this section but whose supply involves their removal to or from the United Kingdom shall be treated - (a) as supplied in the United Kingdom where their supply involves their removal from the United Kingdom without also involving their previous removal to the United Kingdom; and (b) as supplied outside the United Kingdom in any other case

The general rule for B2C supplies of services is that the place of supply is where the supplier belongs, irrespective of the location of their customer.

For VAT purposes, the place of supply of a service is the place where that service is treated as being supplied. This is the place where it’s liable to VAT (if any). If the supply is in the UK it is subject to UK VAT. If the supply is in an EU member state or another country it is said to be ‘outside the scope’ of UK VAT.

oint created by the removal. Pursuant to section 6(5) where an invoice is issued within 14 days of the basic tax point the time of supply can be deferred to the date of the invoice. (4) Section 7 VATA lays out the basis on which the place of supply is determined. 7(2) states that: “if the supply of any goods does not involve their removal from or to the United Kingdom they shall be treated as supplied in the United Kingdom if they are in the United Kingdom and otherwise shall be treated as suppl

The ‘use and enjoyment’ rules apply to the following supplies: B2B supplies of telecommunication services electronically supplied services insurance repair services B2B and B2C supplies of hiring of goods hiring of means of transport broadcasting services Effective use and enjoyment take place where a recipient actually consumes services irrespective of the contractual arrangements, payment or beneficial interest. These rules prevent distortive outcomes that would happen if we only considered th

A UK supplier provides administrative services to a customer in France. The customer provides a valid French registration number. The supply is therefore being made B2B and so the general rule says that the place of supply is where the recipient belongs. As this is France, the supply is outside of the scope of UK VAT. A consultant in the UK provides advisory services to an Italian trade organization, which is a limited company. The customer is unable to provide a VAT number or any other supporti

Place of supply The normal position is that a business without UK establishment is liable to register under Schedule 1A of the VAT Act 1994 if it makes taxable supplies of any value or intends to do so in the next 30 days. A taxable supply is a supply of goods or services made in the UK other than an exempt supply – section 4(2) of the VAT Act. A key consideration is whether a supply takes place in the UK. An overseas business may not need to register if all the supplies in the UK are: subject t

Section 7 VAT Act 1994 7(3) Goods shall be treated - (a) as supplied in the United Kingdom where their supply involves their installation or assembly at a place in the United Kingdom to which they are removed; and (b) as supplied outside the United Kingdom where their supply involves their installation or assembly at a place outside the United Kingdom to which they are removed.

The scope of VAT is defined in Section 4 of the VAT Act 1994 4(1) VAT shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him (2) A taxable supply is a supply of goods or services made in the United Kingdom other than an exempt supply. For VAT purposes, the country where a supply is deemed to be made is called the ‘place of supply’ and is the place where it

There are 2 general rules for determining the place of supply of services, one for business to business (B2B) and one for business to consumer (B2C). The B2B general rule for supplies of services is that the supply is made where the customer belongs. The B2C general rule for supplies of services is that the supply is made where the supplier belongs. There are also special place of supply rules for certain services. For more information read Place of supply of services (VAT Notice 741A). If you b

Goods are normally treated as being supplied where they are located at the time of supply and not where the supplier is located. Goods located: outside the UK are not exports and the supply is outside the scope of UK VAT in Northern Ireland that are sent to an EU destination should follow the rules for VAT on movements of goods between Northern Ireland and the EU in Great Britain that are sent to an EU destination should follow the export rules in this notice

The scope of UK VAT is defined in Section 4 of the VAT Act 1994 as follows 4(1) VAT shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him. (2) A taxable supply is a supply of goods or services made in the United Kingdom other than an exempt supply. As a result there are four important conditions that have to be met if something is to fall within the scope

he transactions is that they were connected to VAT fraud. Decision 248. We find that CLL and the Dreyers were engaged in VAT fraud and that the appellant, through its director Mr Lambert, knew or ought to have known of that fraud. the second decision: establishment and place of supply 249. The Second Decision concerns whether the appellant should have charged output tax supplies of services to CLL because CLL belongs in the UK by virtue of having a fixed or business establishment in the UK. If C

Section 7(6) applies to goods whose supply involves their being imported into the UK from somewhere outside the UK. Effectively the place of supply is determined by who acts as the importer. So if the supplier imports the goods into the UK, the supply to the UK customer is treated as taking place in the UK and so the supplier may be liable to register for VAT here. Goods moving between the EU and Northern Ireland are not imports. However, if the UK customer imports the goods, the supply is treat

This covers two straightforward situations. Both serve to underline the normal principle (but see VATPOSG5000 for gas and electricity) that for goods to be taxed in the UK they must at some stage be located in the UK. Consequently a supply involving goods that remain in the UK takes place in the UK, whereas a supply involving goods that do not enter the UK takes place outside the UK. The first category describes what are often referred to as domestic supplies. It therefore covers the vast majori