Value Added Tax Act 1994 Schedule 4A paragraph 7

Hiring of goods

Schedule 4A paragraph 7 sets out rules for determining the place of supply where goods (other than means of transport) are hired and their actual use and enjoyment differs from the location where the supply would otherwise be treated as made.

• The paragraph applies to supplies of services consisting of the hiring of goods, but specifically excludes the hiring of means of transport.
• Where such a hiring supply would normally be treated as made in the UK, but the goods are actually used and enjoyed outside the UK, the supply is treated as made outside the UK to the extent of that overseas use.
• Conversely, where a hiring supply would normally be treated as made outside the UK, but the goods are actually used and enjoyed in the UK, the supply is treated as made in the UK to the extent of that UK use.
• The adjustment is proportionate — it applies only "to that extent", meaning the place of supply can effectively be split between the UK and outside the UK based on where the hired goods are actually used.