Place of supply of services ― land-related services

Produced by Tolley
Place of supply of services ― land-related services

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

  • Place of supply of services ― land-related services
  • What is the special place of supply rule for land-related services?
  • What are land-related services?
  • What does land mean?
  • Practical examples ― land-related services
  • How are registration and VAT accounting requirements affected by supplying land-related services?
  • Overseas business supplying land-related services in the UK
  • UK business supplying land-related services outside the UK
  • Practical points ― land-related services

This guidance note deals with the special place of supply rules that apply to land-related services.

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 special place of supply rule for land-related services?

The special place of supply of services rule for land-related services says that these kinds of services are supplied where the land connected with the supply is actually situated.

This rule applies both to business to business (B2B) and business to consumer (B2C) supplies. For discussion of whether a supply is B2B or B2C, see the Place of supply of services ― the general rule, relevant business persons and belonging guidance note.

What are land-related services?

In the context of the special place of supply of services rules, the concept of land-related services includes supplies of land itself. It also includes many other supplies directly related to the land, such as:

  1. construction, alteration, demolition, etc

  2. services of estate agents, architects, surveyors and other similar kinds of professionals

VATA 1994, Sch 4A, para 1; VATPOSS07500

The special rule only applies to services that relate directly to a specific piece of land. So, for example, the services of an architect drawing up plans for a building or part of a building on a specific site would fall under this rule and the place of supply would be where the land is situated. However, if the plans did not relate to a particular site, then the services would not be considered to be land related.

It is worth noting that the grant of a major interest in land (see the Sale or grant of a long lease ― major interests guidance note) is a supply of goods rather than services, so it does not fall within the scope of this rule.

What does land mean?

Land has quite a broad meaning in this context. HMRC

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