Commentary

V3.194 Place of supply of services—special rule—hire of means of transport

Part V3 Supplies, acquisitions and imports

V3.194 Place of supply of services—special rule—hire of means of transport

V3.194 Place of supply of services—special rule—hire of means of transport

This paragraph covers the special place of supply rules that apply to the hire of means of transport.

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

Place of supply of hire of means of transport—UK legislation

The general rule for determining where a supply of services is made (see V3.183) is varied by VATA 1994, Sch 4A, para 3 (short-term hire) and VATA 1994, Sch 4A, para 13A (long term-hire) in relation to the letting on hire of any means of transport.

In addition, the place of supply of all hire of means of transport (ie both short and long-term hire1) is subject to the rule on effective use and enjoyment (by virtue of VATA 1994, Sch 4A, paras 3 and 7). The rule on effective use and enjoyment is covered in V3.193C.

The term 'means of transport' is not defined within VATA 1994 (a definition in VATA 1994, s 95(1) applies only in relation to the expression 'new means of transport').

Short-term hire

The special place of supply rule in VATA 1994, Sch 4A, para 3 provides that the short-term hiring of a means of transport is treated as made in the country in which the means of transport is actually put at the disposal of the person by whom it is hired2.

The rule applies to both supplies to relevant business persons (see V3.182A) and supplies which are made to other persons3.

The rule is subject to

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