Value Added Tax

Place of supply of services ― hiring goods and means of transport

Produced by Tolley
  • 04 Apr 2022 11:47

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Place of supply of services ― hiring goods and means of transport
  • What is the place of supply when hiring goods (other than means of transport)?
  • How do the use and enjoyment provisions apply to the hiring of goods?
  • How might use and enjoyment apply in practice?
  • What if the hired goods are only partially used and enjoyed outside / in the UK?
  • What is the place of supply of the hire of a means of transport?
  • What is a means of transport?
  • What is short-term hire and what is long-term hire of a means of transport?
  • What is the place of supply of a short-term hire of a means of transport?
  • What is the place of supply of a long-term hire of a means of transport?
  • More...

Place of supply of services ― hiring goods and means of transport

This guidance note looks at the special place of supply of services rules that apply to the hiring of goods and ‘means of transport’ for VAT purposes.

For an overview of VAT and international services more broadly, see the International services ― overview guidance note.

For in-depth commentary on the legislation and case law, see De Voil Indirect Tax Service V3.188.

What is the place of supply when hiring goods (other than means of transport)?

The starting point for determining the place of supply for the lease / hire of goods (other than means of transport) depends on whether the transaction is B2B or B2C.

For B2B supplies, the place of supply of services should be determined under the general rule. The place of supply is therefore where the customer belongs.

For B2C supplies, the place of supply is determined under the general rule unless the customer belongs outside the UK and the Isle of Man. If the customer belongs outside the UK and the Isle of Man, then the place of supply is where the customer belongs.

However, both B2B and B2C supplies are also subject to ‘use and enjoyment’ provisions as described below. These provisions can change the place of supply determined under the rules set out above.

For the general rule, the distinction between B2B and B2C supplies and the concept of belonging, see the Place of supply of services ― the general rule, relevant business persons and

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

There's no margin for error. Think Tax.
Think Tolley.

TolleyGuidance gives you direct access to critical, comprehensive and up-to-date tax information and expertise you can rely on.

TAKE A FREE TRIAL

Popular Articles

Effective tax rate planning

Calculation of the effective tax rateAn international group’s effective rate of tax is usually calculated as the amount of tax it pays divided by its consolidated profits. The effective tax rate depends largely on:•the rate of tax paid by each company in the group•the companies in which profits are

23 Mar 2022 10:51 | Produced by Tolley in association with Anne Fairpo Read more Read more

Tax equalisation

IntroductionTax equalisation is widely used by multi-national companies or group moving employees from one country to another. It is not a statutory concept but is an arrangement between an employer and employee.The idea behind tax equalisation is that an employee accepting an assignment somewhere

22 Mar 2022 12:21 | Produced by Tolley Read more Read more

Winding up a trust

When does a trust come to an end?A trust may come to an end because it has run its course and comes to a natural end. If a trust has no assets , it ceases to exist. Alternatively, a trust ends because the trustees or beneficiaries decide to wind it up: the trustees distribute the assets by

23 Mar 2022 10:50 | Produced by Tolley Read more Read more