Value Added Tax Act 1994 Schedule 4A paragraph 9

Electronically-supplied services

Schedule 4A paragraph 9 determines where electronically supplied services to business customers are treated as taking place, based on where those services are effectively used and enjoyed.

• The place of supply for electronic services to business customers follows where the service is actually used and enjoyed, not just where the customer is established.
• If a service would normally be treated as supplied in the UK but is used and enjoyed abroad, it is treated as supplied outside the UK to that extent — and vice versa.
• Electronically supplied services include website hosting, software, digital content such as music, films, games and broadcasts, database access, and distance teaching.
• Simply communicating with a customer by email does not, on its own, make a service an electronically supplied service.