Place of supply of services—special rules
Produced in partnership with John Fuszard of Sagars Accountants Ltd

The following Tax practice note produced in partnership with John Fuszard of Sagars Accountants Ltd provides comprehensive and up to date legal information covering:

  • Place of supply of services—special rules
  • The general rule
  • Services relating to land
  • Cultural, artistic, sporting, scientific, educational, entertainment or similar activities
  • Examples of CASSEE services
  • Place of supply rules for CASSEE services
  • Work on, and valuation of, goods
  • Intermediaries
  • Transport
  • Hire of goods
  • More...

Place of supply of services—special rules

IP COMPLETION DAY: The Brexit transition period ended at 11pm on 31 December 2020. At this time (referred to in UK law as ‘IP completion day’), transitional arrangements ended and significant changes began to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Tax?

Determining the place where a service is supplied is important because this will establish the country, if any, in which it is subject to VAT:

  1. a service that is supplied in the UK will be subject to VAT, if at all, in the UK

  2. a service that is supplied in another EU Member State will be subject to VAT, if at all, in that state—a UK business making supplies in another Member State may need to register and account for VAT in that state, unless the customer accounts for the VAT under the reverse charge rules

  3. a service that is supplied outside the EU is outside the scope of VAT and not subject to VAT in any EU Member State. The supplier would however need to consider any obligations in relation to local turnover taxes

For VAT purposes, the UK includes the Isle of Man, but not the Channel Islands.

There is a general rule for

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