Value Added Tax Act 1994 section 7

Place of supply of goods

Section 7 sets out the rules for determining whether a supply of goods takes place in the United Kingdom for VAT purposes, which is fundamental to establishing whether UK VAT applies to a transaction.

• Goods that are not moved to or from the UK are treated as supplied in the UK if they are physically located here; goods installed or assembled at a UK location are also treated as supplied in the UK.
• Low-value imported consignments (intrinsic value of £135 or less) supplied in the course of business are generally treated as supplied in the UK, provided the consignment does not contain excise goods and is not covered by an arrangement where an overseas postal operator pays the import VAT.
• Where goods are imported by or under the direction of the supplier, and no other rule has already determined the place of supply, the supply is treated as taking place in the UK.
• HMRC may change the £135 threshold by regulations, and the Treasury may vary the place of supply rules by order for goods generally or for particular categories of goods.