34. General rules

Summary

From 1 January 2010, there are two general place of supply rules for services, depending on whether the recipient is a business or a consumer.

• For Business to Business (B2B) services, the general rule is that the place of supply (and, therefore, taxation) is the place where the recipient is established.
• For Business to Consumer (B2C) services, the general rule is that the place of supply (and, therefore, taxation) is the place where the supplier is established.

There are, however, a number of exceptions to the general rules, depending on the type of service. Tables 4.1 and 4.2 at the end of this Part summarise the position.

Details

Paragraphs (a) and (b) give the general rules that apply from 1 January 2010 on place of supply for services. Paragraphs (c) to (n) give the exceptions.

(a) Paragraph (a) provides that, unless covered by an exception, the place of supply (and, therefore, taxation) in respect of Business to Business (B2B) services is the place where the recipient is established.

(b) Paragraph (b) provides that, unless covered by an exception, the place of supply (and, therefore, taxation) in respect of Business to Consumer (B2C)services is the place where the supplier is established.

The exceptions to the general B2B rule for place of supply of services are in paragraphs (c), (d), (g), (i), (j) and (k). The exceptions to the general B2C rule for place of supply of services are in paragraphs (c) to (n) – i.e. all of the paragraphs below.

• (c) Immovable goods or grant of a right to use immovable goods —the place where those goods are located.
• (d) Passenger transport —the place where the transport takes place.
• (e) B2C goods transport outside EU —the place where the transport takes place.
• (f) B2C goods transport within EU —the place of departure of the goods (being the place where the transport of the goods actually begins).
• (g) The supply of services, and of any ancillary services, in respect of or related to admission to a cultural, artistic, sporting, scientific, educational, entertainment or similar event, such as a fair or exhibition (including the supply of tickets granting access to such an event), to a taxable person —the place where that event actually takes place.
• (ga) The supply of services, and of any ancillary services, in respect of or related to a cultural, artistic, sporting, scientific, educational, entertainment or similar activity, such as a fair or exhibition (including the supply of services of the organiser of such an activity or the supply of tickets granting access to such an activity), and the supply is to a non-taxable person —the place where that activity actually takes place.
• (h) B2C ancillary transport (such as loading goods), valuations/work on movable goods or contract work —the place where the services are physically carried out.
• (i) Restaurant or catering services (other than next paragraph) —the place where the services are physically carried out.
• (j) Restaurant or catering services on board ships, planes or trains in the EU; journey starts in the State —the State.
• (k) Short-term hiring of transport —the place where the customer first gets the means of transport.
• (ka) Long-term hiring out of a means of transport — subject to (kb), the place where the customer is established, has a permanent address or usually resides.
• (kb) Long-term hiring out of a pleasure boat —the place where the supplier puts the boat at the customer’s disposal provided that the supplier’s place of business or fixed establishment is in that place.
• (kc) Subject to (kd), telecommunications services, radio or television broadcasting services or electronically supplied services (other than services referred to in section 33(2)(ba) and to which paragraph (c) relates) —the place where the customer is established, has a permanent address or usually resides.
• (kd) Telecommunications services, radio or television broadcasting services or electronically supplied services, the value of which does not exceed €10,000 (VAT-exclusive) in the previous calendar year nor in the current calendar year, made by a supplier who is established in only one Member State, other than the Member State of the non-taxable persons to whom such supplies are made, —unless the supplier opts to have the place of supply determined in accordance with (kc), the place where the supplier is established.
  Where a supplier opts to have the place of supply determined in accordance with (kc), that option must remain in place for a period of 2 calendar years.
• (m) B2C services listed in section 33(5) to non-EU customers —the place where the customer is.
• (n) B2C services supplied by an intermediary —the place where the underlying transaction is supplied.

Tables 4.1 and 4.2 at the end of this Part summarise the place of supply rules for services.

Relevant Date: Finance Act 2020