VAT issues on the supply of staff
VAT issues on the supply of staff

The following Tax practice note provides comprehensive and up to date legal information covering:

  • VAT issues on the supply of staff
  • What is a supply of staff for VAT purposes?
  • When do supplies of staff typically arise?
  • Supply of staff or supply of introductory services: case law
  • Employment bureaux
  • Principal (supplies of staffing services)
  • Agent (supplies of introductory services)
  • Secondments
  • Supplies of staff and introductory services—time, value and place of supply
  • Time of supply
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin 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?

This Practice Note considers the VAT treatment of a supply of staff in the course or furtherance of a business. It is important to correctly identify where a supply of staff has been made, as opposed to a supply of an introduction to staff or a supply of services that involves the use of staff, as the VAT treatment of the supplies will be different in each case. The distinction is especially crucial to an employment bureaux whose business may be carrying out supplies of staff or the supplies of introductions to staff (or possibly both in different areas of the business).

What is a supply of staff for VAT purposes?

HMRC states that a business makes a supply of staff for VAT purposes if, for a consideration, it provides another person with the use of an individual who is either:

  1. contractually employed

Popular documents