Value Added Tax Act 1994 section 7A

Place of supply of services

Section 7A sets out the general rule for determining the country in which a supply of services takes place for VAT purposes, based on whether the customer is a business or a private individual.

• Where services are supplied to a business customer (a "relevant business person"), the place of supply is the country where the customer belongs — meaning the customer generally accounts for VAT in their own country.
• Where services are supplied to a non-business (private) customer, the place of supply is the country where the supplier belongs — meaning the supplier accounts for VAT in their own country.
• A "relevant business person" is anyone who carries on a business and does not receive the services wholly for private purposes, regardless of whether the services are received in the course of that business.
• The general rule is subject to a number of specific exceptions set out in Schedule 4A, and the Treasury has the power to amend the rules or create further exceptions by order.