Value Added Tax Act 1994 section 9D

Repair services: contracts of insurance

Section 9D determines the place of supply for repair services on movable physical goods when those repairs are carried out under an insurance claim and supplied to a business that is not the insured party.

• This rule applies only to repairs of tangible movable property made pursuant to an insurance claim, where the recipient is a business person other than the insured party.
• If such a repair service would normally be treated as supplied in the UK but is actually used and enjoyed outside the UK, it is treated as supplied outside the UK.
• Conversely, if such a repair service would normally be treated as supplied outside the UK but is actually used and enjoyed in the UK, it is treated as supplied in the UK.
• The overall effect is that the place of supply follows where the service is effectively used and enjoyed, overriding the default place of supply rules.