Services relating to land and property

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

  • Services relating to land and property
  • Determining the type of service provided
  • What are services relating to land and property?
  • VAT treatment
  • Exhibitions, storing goods and airport lounges
  • Place of supply changes from 1 January 2017
  • Relevant case law

This guidance note deals with theVAT treatment of supplies of land and property within theEU.

Determining thetype of service provided

The supplier needs to determine thetype of service provided in order to ascertain thecorrect VAT treatment. If thesupply is made up of a number of different types of services, thesupplier will need to determine whether there is a single supply or a number of separate supplies made to thecustomer. Please see theSingle or multiple supplies ― application of Card Protection Plan guidance note for more information.

If thesupplier has identified that theservices supplied relate to land and property then this guidance note should be used to determine thecorrect VAT treatment of theservices provided. If theservices are not directly related to land then theother guidance notes in this sub-topic should be reviewed in order to ascertain thecorrect VAT treatment. The Flowchart ― Place of supply of services may provide assistance with determining what type of service is being supplied.

What are services relating to land and property?

For VAT purposes, land includes all forms of land and property, such as land used for growing crops, buildings, walls, fences, civil engineering works and other structures that are permanently affixed to theland or seabed.

VATA 1994, Sch 4A, para 1; De Voil Indirect Tax Service, V3.188 (subscription sensitive); 2006/112/EC, Article 47 ; VATPOSS07300

If thebusiness is supplying services that are directly related to land, theplace of supply is thecountry where theland is situated.

The following are typical examples of services that relate to land:

VATPOSS07600
  • hotel accommodation (please note that theVAT Tour Operators Margin Scheme may

More on Cross border supplies of services: