Commentary

RCB/22/12—The place of supply of services connected to land

Part V16 Forms and other HMRC material

RCB/22/12—The place of supply of services connected to land

RCB/22/12—The place of supply of services connected to land

Revenue & Customs Brief, Issue 22. 2 August 2012

This Brief provides a statement of HM Revenue & Customs' (HMRC's) policy on the place of supply of services connected to land following discussions at EU level. It also details changes to HMRC's published policy in respect of the treatment of exhibition stands, storage and warehousing, and access to airport lounges.

The Brief is concerned only with determining the place of supply of these services. It does not affect HMRC's guidance or policy on the rate of tax that applies to any such supplies.

Readership

This Brief is aimed at businesses that make or receive supplies of services connected to land and property. In particular it will affect businesses that:

  1.  

    —     supply or buy in stands at exhibitions

  2.  

    —     store goods for overseas customers

  3.  

    —     provide access to airport lounges

Background

The place of supply of services rules are an important concept in VAT as they are used to determine the country in which VAT is due so as to avoid either taxing the same supply twice or not taxing it at all. If a supply of services takes place in the UK then UK VAT will be due, but if the supply takes place in another EU member state then it will be subject to VAT in that member state.

In most cases where services are supplied by a business in the UK to a business customer in another member state then no UK VAT is charged

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial