Place of supply - recruitment agency

Place of supply - recruitment agency

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I think placement of staff is an exception to normal place of supply rules in VAT act but can someone confirm.

Basically, recruitment agent takes instruction from Bermudian client ( with no UK links at all). They advertise in UK, find a candidate who is UK citizen and candidate moves to Bermuda. Agency places permanent placement fee.

I think outside the scope of UK VAT.
Steven Holloway

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Euan's picture
By Euan MacLennan
04th Sep 2008 18:20

You're right
Under VATA 1994 Sch.5 para.6, the supply of staff is treated as taking place where the recipient belongs. As Bermuda is outside the EC, the supply is outside the scope of VAT.

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