VAT—place of supply for land and related services
Produced in partnership with Martin Scammell
VAT—place of supply for land and related services

The following Tax guidance note Produced in partnership with Martin Scammell provides comprehensive and up to date legal information covering:

  • VAT—place of supply for land and related services
  • Why does this matter?
  • Legislation
  • Guidance
  • What kind of services are land-related?
  • What is meant by land?
  • What if the services are partly land-related?
  • What if the services are related to land in more than one jurisdiction?
  • What counts as the UK?
  • Outputs of the land—the use of property
  • more

This Practice Note is about the VAT place of supply rules for property transactions and associated services. For information on the place of supply of other services, or of goods, see Practice Notes: VAT place of supply rules—where is a supply made? and Place of supply of services—special rules.

Why does this matter?

UK VAT is only chargeable if the supply is treated as made in the UK. Otherwise it is outside the scope of UK VAT, but may be subject to VAT in another country. For most services, the position depends on where the parties are established (see Practice Note: VAT place of supply rules—where is a supply made?), but for land-related services it depends on the location of the property. Landlords, contractors and professional advisers will often need to know whether these rules apply, in order to determine whether they must charge VAT.

Legislation

The EU VAT Directive refers to ‘services connected with immovable property’. For these services, the place of supply is the location of the property, so that services connected with property in a particular country are within the scope of that country’s VAT system, even if both the supplier and the customer are established elsewhere.

The Directive itself offers only limited guidance on the scope of this provision, but it is supplemented by a much