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VAT place of supply rules

VAT place of supply rules for B2B supply of services

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I have a UK based client that supplied market research services to another UK based business. Per VAT notice 741 the place of supply is where the customer is which is in the UK and therefore VAT should be charged. All of the work was carried out outside the EU and therefore the customer is saying that VAT should not be charged as the supply is outside the scope of VAT but I cannot see any guidance in the VAT notice.

Is anyone able to point me in the right direction where I can find the correct guidance?

Thanks in advance for any assistance received.

Replies (4)

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By Haemorrhoid
15th Feb 2017 13:09

You need VAT Notice 741A.

The B2B general rule is that the place of supply is where the customer is.

You have not provided sufficient information for anybody to help you though. Why did this UK customer need market research carried out outside the EU, for example?

Thanks (1)
Replying to Haemorrhoid:
15th Feb 2017 13:21

Thanks for your response. Notice 741A is what I was looking at and I came to the conclusion that VAT was correctly charged. I have asked my client to get their customer to point us to the correct legislation if they think VAT should not be charged.

The only further information I have been able to obtain is that my client's customer has some contracts outside the EU and part of their contract requires research work that my client specialises in and had the resources in those countries to be able to deliver the research.

Thanks (0)
Replying to AS:
By shaun king
15th Feb 2017 15:50

Unless the word is land related, the place of supply if the UK if both UK VAT registered. It is one of those anomalies that arise from the supply of services rules.

Thanks (1)
By Haemorrhoid
15th Feb 2017 14:25

I can see nothing to suggest that the place of supply is any place other than the UK.

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