Commentary

V7.275 International services that are zero-rated

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.275 International services that are zero-rated

Part V7 Tax planning | Commentary

V7.275 International services that are zero-rated

The examples considered in this and other sections have illustrated situations when VAT is not charged by suppliers in many cases because the customer has taken responsibility for paying output tax through the reverse charge procedure. The end result is still the same – an output tax declaration is made on the services supplied (but by the customer rather than the supplier).

In other cases, VAT has not been charged on a supply because the recipient of a service is based outside the EU.

In basic terms, the key approach is to identify the place of supply – and if this is outside the UK, then the services are

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