Congratulations to Lisa Tagg who has recently qualified as a Chartered Legal Executive . Having gained a First Class Honours Degree in Law and a Masters in Medical Law from the University of Kent, Lisa has gained experience in various areas of...
With different rates of value-added tax (VAT) applying throughout Europe, the place that a supply is made (and hence the VAT rate which is applicable) can be a very important matter.
The basic 'place of supply' rule is that in normal circumstances (and subject to some exceptions), the place of supply for a service is the place where the supplier 'belongs' – in other words, where they normally do business. However, this has caused considerable problems where the supply is one of services, not goods. Accordingly, the rules were changed on 1 January 2010, such that the basic rule for the place of supply of a service is now where the customer belongs if the customer is a business.
The place of supply rules are complex and should be understood fully if they affect you.
Following Brexit, it is almost certain that VAT legislation will change significantly, although how such changes will manifest themselves is not yet known.