Where is the place of supply of services (rules until 31 December 2020)?

Produced by Tolley
Where is the place of supply of services (rules until 31 December 2020)?

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

  • Where is the place of supply of services (rules until 31 December 2020)?
  • Information required by a supplier in order to determine the ‘place of supply’
  • What type of service is being provided?
  • Exceptions to the general rule
  • Where does the customer belong?
  • What does ‘place of belonging’ mean?
  • Customer belonging outside of the EU
  • Customer belonging within the EU
  • When is a business deemed to belong in the UK?
  • Usual place of residence
  • More...

There are special rules governing the VAT treatment of supplies of services. This guidance note will explain the principles that should enable a business or an adviser to determine the place of supply of the services provided. This guidance note should be read in conjunction with the other notes in this subtopic in order to determine the correct VAT treatment of the services rendered.

Information required by a supplier in order to determine the ‘place of supply’

The supplier or adviser needs to have answers to the following questions in order to determine the correct VAT treatment of the supply:

  1. what services are being provided?

  2. do the services come within the general rule or are they covered by the exceptions?

  3. where does the customer belong?

  4. is the customer an ‘EU relevant business person’, non-EU business or private / non-business customer?

Guidance on how to establish the above information can be found below.

What type of service is being provided?

The VAT rules relating to cross-border supplies of services were simplified with effect from 1 January 2010. Most services are now regarded as ‘general rule’ services and these are any services that donot come within one of the exceptions outlined below. General rule services come within the scope of the ‘reverse charge’ mechanism, which means the supplier does not charge VAT on the services supplied to a business established in another EU member state or to any non-EU customer, as the customer is required to self-account for any VAT due. See the Accounting for the reverse charge in the UK (rules until 31 December 2020) guidance note for more information. See also the Supplies of reverse charge services (general rule) (rules until 31 December 2020) guidance note for more information on these types of services.

Exceptions to the general rule

There are a number of services that donot come within the general rule and have specific VAT rules that must be followed. Certain services could require the supplier

Popular documents