Services relating to land and property (rules until 31 December 2020)

Produced by Tolley
Services relating to land and property (rules until 31 December 2020)

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

  • Services relating to land and property (rules until 31 December 2020)
  • What are services relating to land and property?
  • VAT treatment
  • Exhibitions, storing goods and airport lounges
  • Practical implications
  • EU ― place of supply changes from 1 January 2017

This guidance note deals with the VAT treatment of supplies of land and property within the EU.

What are services relating to land and property?

For VAT purposes, land includes all forms of land and property, such as land used for growing crops, buildings, walls, fences, civil engineering works and other structures that are permanently affixed to the land or seabed.

If the business is supplying services that are directly related to land, the place of supply is the country where the land is situated.

The following are typical examples of services that relate to land:

  1. hotel accommodation (please note that the VAT Tour Operators Margin Scheme may apply if the hotel accommodation is provided together with other travel-related services ― see the Tour Operators Margin Scheme (TOMS) ― overview guidance note)

  2. provision of a site or stand at an exhibition where the exhibitor obtains the sole right to use a specified area of the exhibition venue. Please note that if additional services are provided together with the specified area and the ‘add on’ services are deemed to be the major element of the overall supply, this will not be a land-related service and it will be treated as a general rule service instead (see below).

  3. construction, conversion, enlargement, reconstruction, alternation, demolition, repair or maintenance of any building or civil engineering works

  4. the supply of plant or machinery together with the operator for work on construction sites

  5. estate agents, auctioneers, architects, solicitors, surveyors, engineers and similar providing services relating to land, buildings or civil engineering works. The services include management, conveyancing, survey or valuation of a property by a solicitor, surveyor or loss adjuster

  6. oil / gas / mineral exploration or exploitation services relating to a specific site of land or seabed

  7. surveying land or seabeds (includes seismic, geological and geomagnetic). This category would also include processing data used to collate the required information

  8. legal services relating to land, such as conveyancing or dealing with applications for

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