I would be grateful for some advice.
A UK based, VAT registered Ltd company invoiced a customer in Hong Kong for providing home search services (he is moving back to the UK to live in rented accommodation). The customer challenged the fact he was charged VAT on the supply of service, and the director re issued an invoice with no VAT.
I looked into it and my view is that they should have charged VAT because :
1. Under the general rule for a non-business customer the place of supply is the UK.
2. When the company supplies services relating to land and property, then the place of supply is always where the land or property is located.
I am right in assuming that home search services fall into this category (the accommodation is based in the UK)?
The director thinks he challenged it on the ground this was a relocation, however the invoice was sent to the customer (and not his company) and paid for directly by the customer. Would it make a difference anyway if the cost of home search was covered by the customer's company?
Am I missing something?