Commentary

V7.270 Summary of the changes to the place of supply rules

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.270 Summary of the changes to the place of supply rules

Part V7 Tax planning | Commentary

V7.270 Summary of the changes to the place of supply rules

Introduction

As a brief summary, I have shown four boxes below that highlight the changes made to the place of supply rules on 1 January 2010, 1 January 2011, 1 January 2013 and 1 January 2015.

As a separate summary, a key question now being asked by advisers is: when must VAT still be charged by a UK business on a service carried out for an overseas customer? The following summary highlights the main situations.

UK VAT must still be charged on services to an overseas customer in the following situations:

  1.  

    •     land-related services where the land is situated in UK – unless the services are specifically zero-rated, (eg building services on a new residential dwelling) or certain other services (see 'HMRC policy on certain land related services' below)

  2.  

    •     admission to a UK event (B2B or B2C) – eg an accountancy CPD seminar organised by a commercial training provider

  3.  

    •     car hire – B2B – hire period less than 30 days – where the car is made available to the customer in the UK

  4.  

    •     B2C sales to EU customers – general default position for place of supply is the location of the supplier

  5.  

    •     many B2C sales to non-EU customers – but see below at heading 'No VAT charge on some supplies to non-business customers (outside EU)' for exceptions

Box 1 – Changes introduced on 1 January 2010

– The place of supply for most B2B (business

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