Hiring goods, e-services, telecommunication services and radio and broadcasting services

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Hiring goods, e-services, telecommunication services and radio and broadcasting services
  • Determining the type of service provided
  • Hiring goods other than a new means of transport
  • Hiring a means of transport
  • Broadcasting, telecommunication and e-services (BTE services)
  • Supplies not treated as BTE services
  • Determining where the customer belongs
  • VAT treatment of BTE with effect from 1 January 2015
  • B2C supplies of telecommunication services - changes to the use and enjoyment provisions from 1 November 2017
  • Mini one stop shop (MOSS)

This guidance note deals with the VAT treatment of specific types of services supplied to both EU andnon-EU customers. This note should be read in conjunction with the Overview of the place of supply of services rules andMini One Stop Shop (MOSS) ― registration guidance notes.

HMRC Notice 741A 
Determining the type of service provided

The supplier needs to determine the type of service provided in order to be able to ascertain the correct VAT treatment. If the supply is made up of a number of different types of services, the supplier will need to determine whether there is a single supply or a number of separate supplies made to the customer. Please see the Single or multiple supplies ― application of Card Protection Plan guidance note for more information on how to determine whether the supplier is making a single composite supply or a mixed supply for VAT purposes.

Once the supplier has accurately determined the type of services that will be provided to the customer, the supplier will need to ascertain the location andbusiness status of the customer. Once the supplier has all of this information it should be able to determine the correct VAT treatment of the services provided. The Flowchart ― place of supply of services can also be used as a quick reference guide to the types of services that can be provided.

Hiring goods other than a new means of transport

The VAT treatment of the lease, hire or loan of goods (excluding a means of transport, any goods that are treated as land andproperty, or equipment / machinery that is installed as a fixture) is discussed below; these are known as moveable goods. Please note that if an operator or technician is included with the goods supplied, the services are not included within the

More on Cross border supplies of services: