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Place of supply for VAT - general rule or land

Place of supply for VAT - general rule or land related or something else.

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Client owns an estate agents and property management company in London. They often provide property management services to EU based companies. I'm happy that the place of supply for these is the UK as they fall under the land related element of the rules and they therfefore have to charge clients 20% UK VAT. 

The client also charges companies based in the EU a fee to display their products (floor tiles, marble kitchen worktop samples, luxury handbags and rugs etc) in the London shop. This is basically an advertising fee for their products. The shop does not sell the products, they are simply advertising them and putting the potential buyer in contact with the supplier.

Does the place of supply for VAT for the advertising fee fall under the genral rule i.e. where the client is based in the EU and therefore no UK VAT is chargable OR does it somehow fall under the land related element of the rules and therefore the place of supply is the UK and the company must charge 20% UK VAT?

I believe it falls under the genral rule and I'm second guessing myself but my brain is tired from personal tax return hell so any opinions would be very welcome.

Thank you as always. 

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By Jason Croke
02nd Feb 2021 17:40

Advertising/marketing isn't a land related supply, so I'm with you on this being a general rule supply, outside the scope if customer is not UK.

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