| Commentary

398 Reverse charges

| Commentary

398 Reverse charges

Where a United Kingdom VAT-registered recipient receives a supply of services in the United Kingdom from a person belonging outside the United Kingdom who is not registered for VAT here, that recipient must account for VAT in the United Kingdom on the payment made to the foreign supplier, under the reverse charge procedure.

This is to eliminate any distortion which would otherwise arise if overseas suppliers could make supplies free of VAT. The services to which the reverse charge applies include transfers and assignments of copyrights, patents, licences and trade marks, advertising services, the services of consultants, and

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