V3.182A Place of supply of services—relevant business persons

Part V3 Supplies, acquisitions and imports

V3.182A Place of supply of services—relevant business persons

V3.182A Place of supply of services—relevant business persons

This paragraph covers the concept of a 'relevant business person' for the purposes of the place of supply of services.

For an overview of the place of supply of services rules more broadly, see V3.181.

The place of supply, under both the general rule and many of the exceptions thereto (see V3.181) is based on whether or not the recipient of the supply is a 'relevant business person'. A clear understanding of this concept is therefore frequently essential to determine the correct place of supply.

Relevant business person—UK legislation

With effect from IP completion day (ie 11pm on 31 December 2020) a person is a 'relevant business person', in relation to a supply of services, where both1:


    •     the person carries on a business


    •     the services are not received by the person wholly for private purposes

The legislation specifically provides that a person satisfying these conditions is a relevant business person whether or not the services are received in the course of business2.

Taxable person—EU and Retained EU legislation

The EU equivalent to the UK's 'relevant business person' is the term 'taxable person' (this may cause some confusion given the term 'taxable' is sometimes used differently in the UK – see also V2.101).

EU legislation which was previously directly applicable in the UK3 (and which may remain of potential continued relevance4 despite the UK's departure from the EU) required the status of the customers as a 'taxable person' to be determined in accordance with

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