What difference does the place of supply make?

This determines the VAT treatment, and details are set out in the VAT Directive (2006/112/EC). If the place of supply is:

  • the UK, then UK VAT rules apply and any output VAT due under the UK rules is due to HMRC
  • outside the UK, then no output VAT is due to HMRC, but VAT or a similar sales tax may be due under that state’s rules

Want to discuss further?

Ross Palmer

Senior Tax Manager

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