Commentary

741A Place of supply of services

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

741A Place of supply of services

Part V8 HMRC Notices | Commentary

741A
Place of supply of services

December 2020

This notice cancels and replaces Notice 741 (February 2010).

1 Overview

1.1 Who should read this notice

You should read this notice if you:

  1.  

    •     make supplies of services to customers outside the UK

  2.  

    •     receive services from suppliers that belong outside the UK

  3.  

    •     belong outside the UK and have customers in the UK

1.2 What is this notice about

This notice explains how to determine the place of supply of your services and therefore where the services are liable to VAT. Once you have made this decision you can move onto considering the VAT liability of the supply. It also explains how to deal with supplies of services which you receive from outside the UK.

1.3 The law this notice covers

UK VAT law covered by this notice is contained in the VAT Act 1994, as amended, as follows—

  1.  

    •     Section 7A of the VAT Act covers the general rule for business to business (B2B) and business to consumer (B2C) supplies of services and also defines a “relevant business person” for supplies of services. See section 6 of this notice.

  2.  

    •     Section 8 covers the accounting mechanism for supplies received from outside the EU – the 'reverse charge” procedure. See section 5 of this notice.

  3.  

    •     Section 9 covers where a person is regarded as belonging for VAT purposes. See section 3 of this notice.

  4.  

    •     Schedule 4A of VATA covers the exceptions to the general rule. See table 1 in paragraph 2.4.3.

  5.  

    •     Schedule 6 para 8 covers

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