Supply to EU institutions

Exempt supply?

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Hello all,

A client who runs an occupational health consultancy has been asked to provide some services to the European Investment Bank.  The EIB has stated to the client that as an EU institution it is not subject to VAT.

I was asked to check and found Directive 2006/112 art. 151(1)(aa) which was that "Member states shall exempt the following transactions:...the supply of goods and services to...the European Investment Bank."  This seemed ok.

I tried to verify this with an HMRC webchat but just got pointed to the place of supply rules, which wasn't exactly what I was looking for.  When I mentioned the above Directive they said they weren't familiar with that and should contact the written enquiries team.

I just wondered if any of you good people had come across this before and could offer any insight.  Many thanks in advance.

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By WhichTyler
31st May 2020 20:18

Seems kosher, haven't come across it myself in real life...

https://www.gov.uk/hmrc-internal-manuals/diplomatic-privileges/dippriv4000

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By paul.benny
01st Jun 2020 12:00

Also no direct experience, but if the Directive is as you have quoted, that's the law, at least until the end the Brexit transition period.

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