VAT place of supply rules—where is a supply made?
Produced in partnership with Michael Ridsdale of Wedlake Bell LLP
VAT place of supply rules—where is a supply made?

The following Tax practice note produced in partnership with Michael Ridsdale of Wedlake Bell LLP provides comprehensive and up to date legal information covering:

  • VAT place of supply rules—where is a supply made?
  • Where is a supply made for VAT purposes?
  • What are the rules concerning the place of supply of services?
  • What is the general rule for the place of supply of services?
  • What are the exceptions to the general rule for place of supply of services?
  • Services relating to land
  • Who is a relevant business person?
  • How do I know where the recipient or supplier of services belongs?
  • How is the reverse charge relevant?
  • What are the rules concerning the place of supply of goods?
  • More...

Where is a supply made for VAT purposes?

In order to determine whether a supply is subject to UK VAT or VAT in another jurisdiction it is necessary to consider the place of supply rules. As explained in Practice Note: When does VAT apply? UK VAT is only chargeable on a supply made in the UK.

In some situations it may seem obvious that a supply is made in the UK and therefore subject to UK VAT, but where goods and services are:

  1. bought from, or exported to, overseas jurisdictions, or

  2. of a particular nature

the answer is not so obvious and a detailed consideration of the place of supply rules is required in order to establish where the place of supply is for VAT purposes.

There are different rules to determine:

  1. the place of supply of services, and

  2. the place of supply of goods

Generally speaking, the rules have been implemented to ensure that there is no double taxation for the provision of cross-border supplies.

This Practice Note includes references to EU Directives and case law. The UK ceased to be an EU Member State on 31 January 2020. On this date the UK entered an implementation period (IP), during which it continued to be treated as a Member State for many purposes, and remained bound by EU law. The IP ended at 11 pm on 31 December 2020.

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