The Bothnian Arc cross-border area is a collab-oration between municipalities across the state border between Finland and Sweden. But, if the same supplier was contracted to create a corporate colour scheme or style for a hotel chain to use in their own properties, those design services would not be land related. The use and enjoyment rules apply in either of the following situations where the place of supply would be: In these circumstances, the place of supply is where their effective use and enjoyment takes place. A ltd place an order on B Ltd to directly supply goods to XYZ Ltd. From 1st Feb 2019-Transaction in Sch III- neither supply of goods nor supply of services (Non-GST Supply). Where you have no fixed business established in the UK and EU, the place of supply will be where the consumer is located. For example, this could be where the customer is when they: Where a relevant service is partially used and enjoyed outside the EU, the supplier (or customer required to account for the supply) should carry out an apportionment based upon the extent to which it’s used and enjoyed outside the EU. Find out how HMRC uses the information we hold about you. Emissions allowances under the EU Emissions Trading Scheme (EU ETS), and instruments representing emission reductions, carbon credits, and certificates that identify that the production of energy has been generated from renewable sources include, but are not limited to: Verified Emission Reductions (VERs) are currently considered to be outside the scope of VAT. For cross-border supplies of digital services, ... For information on the VAT liability of supplies see section 29 of VAT guide (Notice 700). ?Product Type Detail, Section 10: 700 USD? For information on the VAT liability of supplies see section 29 of VAT guide (Notice 700). Examples of acceptable evidence of export are contained in VAT on goods exported from the UK (Notice 703). From 1 December 2012 if you are not established in the UK, there is no registration threshold for taxable supplies of services. If there is a single supply directly related to land this treatment covers all the elements that make up the supply. The place of supply rules for services, 12. If you’re ever planning to set up a cross-border e-commerce store selling to China, you’ll first need to figure out where you’re going to get your supplies from and then how to establish an efficient supply chain. If you do not have an establishment in that EU member state, you may need to appoint a local tax representative to account for VAT there on your behalf. When supplied in the UK, the hire of certain ships and aircraft is zero-rated, see Ships, aircraft and associated services (Notice 744C). Effective use and enjoyment takes place where a recipient actually consumes services irrespective of the contractual arrangements, payment or beneficial interest. This is the place where the customer takes actual physical control of the means of transport (for example, where the vehicle is located when the keys are handed over). However same is exempt by virtue of NN 15/2018 IGST(R), provided place of supply of service is outside India in accordance with Sec 13 of IGST Act. The main parties to this investigation are Western Union ompany (hereafter Western Union) and MoneyGram Payment Work carried out on goods is essentially any physical service carried out on another person’s goods. In certain circumstances, specific services may be subject to the zero rate of VAT when supplied in the UK. Where B2C services are provided in connection to cultural, artistic, sporting, scientific, educational, entertainment or similar activities these services will be taxable at the place where they are performed. Such evidence should be kept as part of your records. Where certificates or instruments are sold with goods or services they’ll usually be viewed as incidental or ancillary to the main supply. The UK consists of Great Britain, Northern Ireland and the waters within 12 nautical miles of their coastlines. This notice assumes you have a knowledge of the principles of VAT explained in VAT guide (Notice 700). 5 looks at the evidence on the extent of cross-border supply chain linkages, examining the concentration of trade in intermediates and the composition of trade by two-way traders. This sub-paragraph applies to everything provided as part of an advertising campaign, even if elements of the campaign would have fallen under other place of supply rules or been treated as a supply of goods had they been supplied in isolation. Where the B2B rule applies you should obtain commercial evidence showing that your customer is in business and belongs outside the UK. Section 9-25(5)(c) Section 9-25(5)(c) was introduced in 2005 "to ensure that the GST Act applies to the offshore supply of … Similarly, business visits into A (mode 4) may prove necessary to complement cross-border supplies into that country (mode 1) or to upgrade the capacity of a locally established office (mode 3). If you establish that the place of supply of your intermediary services is the UK you should then consider whether zero rating applies, see section 16. In this case, the place of supply is that place. For example, a yacht is a means of transport even if it’s to be used for racing, as is a train which may be leased to a transport museum. Background to place of supply of services, 4. Services which do not involve intellectual property are not covered even though they may be described as a right or licence. Where this is the UK, the services are subject to UK VAT. See also paragraph 5.14 for a possible interaction with VAT grouping and other member states. LISTS OF COMMITMENTS ON CROSS-BORDER SUPPLY OF SERVICES SECTION A EU PARTY 1. x In Part 3 there is more detail on how the new place of supply rules will operate. documentation confirming cross-border supplies required according to the polish vat law Based on the local VAT legislations, some countries, including Poland, condition the right to apply the exemption from VAT or 0% VAT rate on the supplies of goods from possessing by the seller a relevant documentation confirming transportation and reception of goods by the recipient. But, where any of these services relate to land or property they are excluded. The amount payable to your overseas supplier for the services excludes UK VAT. This includes any taxes levied abroad. The following services are treated as supplied in the place where the customer belongs when provided to non-EU non-business customers: These are intellectual property rights which are capable of being legally enforced. It’s unlikely that all the information in this notice will apply to you, so you do not need to read it all from beginning to end. 2. Amendment was made to, Goods sold to tourists by duty free shops. Any hire beyond this period is a long-term hire. When this is known, you must decide whether the service is being actually used, enjoyed and consumed in that location. For EU VAT purposes, the place of supply of a service is the place where that service is treated as being supplied. Examples of such customers are government departments, local or municipal authorities and similar public bodies. If you supply services whose place of supply is in the UK or an EU member state, you may be liable to register for VAT in that country, but only if the ‘reverse charge’ does not apply (see section 5) or you choose not to use any available special scheme such as MOSS. More guidance on this issue can be found at Revenue and Customs Brief 18 (2015): VAT grouping rules and the Skandia judgement. If you have a temporary presence of human and technical resources in the UK, this does not create a fixed establishment in the UK. For the purposes of this Chapter: cross-border trade in services or cross-border supply of services means the supply of a service: (a) from the territory of a Party into the territory of another Party; (b) in the territory of a Party by a person of that Party to a person of another Party; or Policy and Strategy, Inland Revenue. Global Cross-border E-commerce Product Types In-Depth: , Clothes, Shoes & Accessories, Health & Beauty Products, Personal Electronics, Computer Hardware, Jewelry, Gems & Watches, Industry Segmentation, B2B, B2C, C2C, Channel (Direct Sales, Distributor) Segmentation, Section 8: 400 USD? As Economy and trade have grown to a great extent, there are many types of cross border dealings & transactions that we come across. The supplies are received at the overseas establishment. We work to ensure that every shipment goes safely, securely, and on time. LISTS OF COMMITMENTS ON CROSS-BORDER SUPPLY OF SERVICES SECTION A EU PARTY 1. Thus, from 1st October 2019 this transaction is exempt. If you are supplying services to a business customer that are being used for wholly private purposes, the B2C rules apply. A UK supplier contracts to supply advertising services. Information has been updated in section 14 to reflect changes to the VAT rules for supplies of digital services and the eligibility for non-EU businesses to use the VAT Mini One Stop Shop (VAT MOSS). If a land related service is provided alongside other services that do not relate to land you will need to consider whether there are separate supplies or a single supply to which other services are ancillary. For example, the services of an interior designer contracted to redesign the decor of a particular hotel would be land related. But, in some cases the customer may consider that their aim is not to attend but to gain some other benefit. We use this information to make the website work as well as possible and improve government services. The reverse charge does not apply to exempt services. If you supply the letting on hire of any goods, telecommunications services, radio television broadcasting and electronically supplied services where the place of supply would be outside the EU under sections 6, 12 or 13 and the services are effectively used and enjoyed by your customer in an EU member state, you may be liable to register for VAT in that member state (see paragraph 2.9). For B2C supplies the scope of supplies taxed where performed is far wider and includes services relating to cultural, artistic, sporting, scientific, educational, entertainment and similar activities. In most cases, the activity will normally be related to an event, although not necessarily only for a limited duration. Cross-border supplies (import and export) of goods and services generally entail the presence of an intermediary. Notice 700/1: should I be registered for VAT? If a service is provided to multiple specific sites in different countries it may still be directly related to land. For information about the time of supply see VAT guide (Notice 700). DBS has partnered with JD Logistics (JDL), the supply chain and logistics unit of Chinese online retailer JD.com, to provide supply chain financing to Hong Kong-based small and medium-sized enterprises (SMEs) engaged in cross-border e-commerce import business. Read VAT Mini One Stop Shop: register and use the service for more details on scheme registration. If you’re a non-UK supplier of the services in paragraph 5.9 and your customer does not provide a UK VAT registration number or does not satisfy you that they belong in the UK, you’re responsible for accounting for any UK VAT due on your supply. Advertising or promotional messages may be disseminated in numerous ways. ?Trend (2020-2025), Section 9: 300 USD? The VAT territory of the EU is important in establishing where particular types of service are supplied. It also includes supplies to customers that have both business and non-business activities such as charities, local authorities and government departments. We use cookies to collect information about how you use GOV.UK. If in doubt, confirmation should be sought from the customer. ITC is not required to be reversed- Explanation to Sec 17(2) & Sec 17(3). If you are not already registered in the UK, you’ll be liable to register and account for any VAT due. It does not extend to services which simply facilitate supplies. A business is incorporated in the UK but its sole director lives in Germany. x In Part 3 there is more detail on how the new place of supply rules will operate. It does not apply to land on which the option to tax has been exercised (see section 7 for more details). Such an intermediary is usually a subsidiary of the foreign principal which undertakes facilitation as well as provision of various services on behalf of the principal. We’ll send you a link to a feedback form. The first step in applying use and enjoyment is to determine where the place of supply of the services specified above is in accordance with the other rules explained in this notice. If you supply services whose place of supply is in the UK, you may be liable to register for VAT in the UK. If the first contract is genuinely of a short-term hire it will remain so. The Scope of UNECE standards. Where a supply of services covers services typically provided by more than one of the professions listed, it is not necessary to determine which description best describes the supply as the place of supply will be the same. The aim is to benefit from a lecture. There are different rules depending on whether you’re supplying services to consumers B2C or business B2B. The French establishment deals directly with the UK bank without any involvement of the UK branch. From 1 January 2015, these rules changed for B2C cross-border supplies … If you only make supplies of services in the UK to which the reverse charge does apply you are not entitled to register for VAT in the UK. Where the 2 contracts together exceed 30 days (or 90 days for vessels) then the second and subsequent consecutive contracts are treated as long-term hires. An event is characterised by a gathering of people to watch or take part in an activity for a short or limited time rather than an ongoing basis. For example, if you arrange services connected to land, the place of supply of your services will also be the place where the land is situated. A new online customs portal could help cross-border road freight in South-east Asia maintain volume gains made over air and Supply Chain Apply for Accreditation More detailed guidance has been published by the EU Commission in the form of an Explanatory Note. The allowable exception is travel related to cross-border supply chain and logistics moves, which, of course, were deemed an economic necessity. This will apply to, for example, asylum seekers and those entering the UK without permission. Examples of work on goods which may qualify for zero rating under this section include: Examples of services which do not qualify for zero rating under this section include: To zero rate a supply of such services you must obtain and keep satisfactory official or commercial evidence of the export of the goods to a place outside the UK or EU. Maintained by V2Technosys.com, Taxguru Consultancy & Online Publication LLP, 509, Swapna Siddhi, Akurli Road, Near Railway Station, Kandivali (East), GST on cross border Transactions – Examples & Taxability, Extended/Conditional due dates after 40th GST Council Meeting, Rs 1,04,963 crore of gross GST Revenue collected in November 2020, Weekly newsletter from Chairman, CBIC dated 01/12/2020, Quarterly Return, Monthly Payment Scheme under GST, Central Goods and Services Tax Act, 2017 As on Updated 10.11.2020, Join Certification Courses on GST, Customs & FTP and Income Tax, TCS under section 206C(1H)-A Detailed View, Due Date Compliance Calendar December 2020, Adjudication of Show-Cause Notices after 13 years is untenable in law: Bombay HC, Interest on delayed payment of TDS not allowable as business expenditure, BOT meeting will focus on new Foreign Trade Policy (FTP) (2021-26), CBIC extends levy of Anti-Dumping duty on Methylene till 31.01.2021, MCA notifies Special court in Maharashtra, WB & TN for SEBI Cases under Companies Act, 2013, Statutory and Tax Compliance Calendar for December, 2020, Extension of date of Filing of Accounts to Charity Commissioner in Maharashtra, Show Cause Notices to Taxpayers Under GST Act Mandatory to Upload on Website – Mere E-Mail is not Suffice, New GST Return Scheme for Small Taxpayers, A Ltd India company supplies to its establishment in USA, Supply of service to distinct person outside India. In a EU VAT context, the “place of supply rules” govern where a particular supply takes place. services rules are changing (including the time of supply for cross-border supplies of services subject to the reverse charge). x Part 4 provides further details on the time of supply changes. This notice explains how to determine the place of supply of your services and how to deal with supplies of services which you receive from outside the UK. Details of contact addresses and other useful information provided by the VAT authorities in an EU member state can be found at European Commission. An individual has only one usual place of residence at any point in time. It therefore excludes the training of personnel from government owned industries or sponsored commercial organisations such as state airlines or nationalised industries. VAT MOSS special accounting schemes for digital services, VAT: EU country codes, VAT numbers and VAT in other languages. GST: Cross border supplies 1. You should advise your supplier to amend or correct their invoice appropriately. This covers a wide range of services of different natures. This notice explains how to determine the place of supply of your services and where the services are liable to VAT. See VAT guide (Notice 700) if you need to convert foreign currency into sterling. A company whose business establishment is in France contracts with a UK bank to supply French speaking staff for the bank’s international desk in London. If you supply services that directly relate to land, the place of supply of those services is where the land itself is located, irrespective of where you or your customer belongs or whether they’re in business or not. If the supplier belongs outside of the UK and you, the business customer, belong in the UK (and are VAT registered in the case of hire of means of transport), it’s you, the customer that accounts for the VAT using the reverse charge procedure (see section 3). This notice deals only with the place of supply of land related services. Supplies to visitors from countries outside the EU are no longer subject to UK VAT. This special report provides early information on changes to the Goods and Services Tax Act 1985, recently enacted in the Taxation (Residential Land Withholding Tax, GST on Online Services, and Student Loans) Act 2016. Consequently supplies of such services by UK suppliers to UK residents are now always subject to VAT. This is not limited to the supply of admission as it is for B2B services described in paragraph 9.2. There are a number of exceptions to the general rules and there are special rules to cover these. If you are not UK VAT registered and receive the services in paragraph 5.9 supplied in the UK the reverse charge does not apply. But, it is always necessary to consider all the facts. The following are examples of services taxed where they’re performed when supplied B2C: The place of supply of restaurant and catering services is where the services are physically carried out. x Part 5 sets out the draft time of supply … In these circumstances, the country in which individuals have their usual or permanent place of residence is their country of origin until they are granted the right to remain in the UK. For information on the VAT liability of supplies see section 29 of VAT guide (Notice 700). If you’re a non-UK supplier of B2C intermediary services arranging a supply in the UK, you are responsible for accounting for any UK VAT due on your supply. The ability to prevent, prepare for, detect, respond to, and recover from a potential incident that affects human, animal or plant health without disrupting the supply chain is of paramount importance. The B2B general rule for supplies of services is that the supply is made where the customer belongs. In this circumstance the non-UK supplier must register and account for VAT in the UK. Where an overseas establishment supplies services to a UK establishment within the same legal entity, the reverse charge does not apply since this is a transaction within a single entity and so not a supply for VAT purposes. A ltd India is sourcing goods for B Inc, outside India, Intermediary Service sourcing outside India, Till September 2019, this was taxable. Downloadable! If you have established the facts about your customer but are still unsure about where your services are received, you should contact our VAT: general enquiries team for guidance. The list of commitments below indicates the services sectors committed by Colombia pursuant to Article 118 of this Agreement, and, … See Standard document, Supply of goods agreement (with contract details cover sheet): Cross-border and Standard document, Supply of goods agreement (UK Supplier): Cross-border. These sections were amended by paragraphs 59 and 60, Part 1 of Schedule 8 to the Taxation (Cross-border Trade) Act (c. 22). The place where a supplier or customer belongs will determine where the service is supplied and who accounts for any VAT due in the following cases: You belong in the UK for the purposes of either making or receiving a supply of services when you have any of the following: The references to a ‘business establishment’ or a ‘fixed establishment’ should also be read as including a legal person with no business activities for deciding where such a customer belongs. The services are supplied from the UK branch which is a fixed establishment. If the place of supply of your services is an EU member state, you or your customer may be liable to account for any VAT due to the tax authorities of that country, see paragraph 2.9. The reverse charge is not a complicated accounting procedure. If you are still unhappy, find out how to complain to HMRC. The general rule for B2C supplies of services is that the place of supply is where the supplier belongs, irrespective of the location of their customer. Where B2B general rule services (except exempt services and land on which the option to tax has been exercised) are purchased by an overseas member of a UK VAT group and provided to a UK member of that VAT group, its representative member is required to account for any UK VAT due under the intra-group reverse charge. This includes certificates from fiscal authorities or other commercial documents indicating the nature of the customer’s activities in their home country. To provide capabilities for securing our Nation against threats and hazards without compromising the pace and operational structures of commercial enterprises, the Texas A&M University System formed the Cross-Border Threat Screening and Supply Chain Defense (CBTS) Center of Excellence (COE) in partnership with the U.S. Department of Homeland Security (DHS) Science and Technology Directorate … There is a second separate contract for short-term hire between the same 2 parties. The firm purchases directly from overseas sources and cooperates with local bonded warehouses to deploy a cross-border supply chain to efficiently meet demand. INV029-Supply of cross-border money transfer services. The staff are supplied by the French establishment. Speaking of partners: cross-border shippers and supply chain companies stand to recover a lot of value by partnering with third-party logistics providers, or “3PL” companies. To determine the place of supply of your service you should consider the exact nature of your services against each of the special rules first (see paragraph 6.4) and only if none apply will your service fall under a general rule. It does not include charges by agents for arranging the supply of admission. To help us improve GOV.UK, we’d like to know more about your visit today. A registered office alone is not sufficient to create a business establishment. ), you must declare and pay VAT on the transaction as if you had sold the services yourself, at the applicable rate in your country (using the reverse charge procedure). Do not include any personal or financial information like your VAT number. Where this occurs and the service is land related, a suitable apportionment between countries should be made. If you’re a UK supplier providing services in an EU member state you should check with your customer and that member state how their rules work. The business establishment is the place where you have established your business and the main functions of the business’ central administration are carried out. It does not apply if a supply of services has only an indirect connection with land, or if the land related service is only an incidental component of a more comprehensive supply of services. If you provide services to which the use and enjoyment provisions apply, and the services are used and enjoyed in the UK but would otherwise be outside of the scope of UK VAT, you’ll need to consider who is responsible for accounting for the VAT. If you are not already registered in the UK, you’ll probably be liable to register. Beijing-based PetPlus supplies around 2,000 Chinese online and offline businesses with imported pet products. If you supply services, you may recover (subject to the normal rules) input tax related to: A business that incurs VAT in a member state different to where they are based may be able to claim a refund of that VAT. To provide capabilities for securing our Nation against threats and hazards without compromising the pace and operational structures of commercial enterprises, the Texas A&M […] The services are those that have an advisory nature with a high degree of intellectual character. The concept of a GST PE is being considered as part of the Government's proposals to amend the GST cross border rules. CHAPTER 15. LIST OF COMMITMENTS ON CROSS-BORDER SUPPLY OF SERVICES (referred to in Article 118 of this Agreement) SECTION A COLOMBIA 1. There is no general relief for the export of services as there is for good. But, such businesses may be able to claim a refund of VAT paid in the UK. See section 14 for a definition of digital services and paragraph 2.4 for an explanation of B2C supplies. These services are: You can zero rate the supply of the making of arrangements for: Zero rating under these provisions only applies to the actual making of arrangements for eligible supplies. It is essential that you think carefully about the nature of any services that you supply or receive because it will determine which place of supply rule applies. So recipient didn’t take ITC in GSTR 3B so there is no concept of ITC not to be reversed as per sec 17(2), Your email address will not be published. If you are installing goods on land or in a property the question will arise as to whether you are performing a land related service or installing goods. The labour and skills supply vary significantly For information about registration see Notice 700/1: should I be registered for VAT?. It’s therefore important to consider the place of supply of the goods or services being arranged. For VAT purposes, persons who have not been granted a right or permission to remain in the UK should be treated as belonging in their country of origin. recommends adoption or trial . But, if the overseas establishment is part of a VAT group in an EU member state, such a charge can arise (either in the UK or an EU member state), if that member state’s VAT grouping rules include only the local establishment in their VAT group, and not the UK establishment. They are normally regarded as resident in the country where they’ve set up home with their family and are in full-time employment. More details are available at VAT: how to report your EU sales. E1 ltd in Delhi places an order with E2 in Pune to supply goods to ABC Ltd in Dubai, Bill to in India & Ship to outside India (Merchant Exporter), D1 Ltd in India receives order from D2 Ltd (USA) to deliver goods to XYZ Ltd, Mumbai, Bill to outside India and ship to in India, A ltd India is sourcing goods for B Inc, in India. The use and enjoyment rules are intended to make sure taxation takes place where services are consumed where either services are consumed within the UK but would otherwise escape VAT, or they would be subject to UK VAT when consumed outside the UK and EU. International banks greatly reduced their direct cross-border and local affiliates’ lending as the global financial crisis strained balance sheets, lowered borrower demand, and changed government policies. This includes both finished commodities and raw materials but not immoveable property such as land or permanently installed goods as described in section 7. From 1 November 2017 the law changed in relation to B2C telecommunications services, and the rule concerning the place where the services were used and enjoyed was withdrawn. The firm purchases directly from overseas sources and cooperates with local bonded warehouses to deploy a cross-border supply chain to efficiently meet demand. Means of transport include any vehicle, equipment or device, whether motorised or not, that’s designed to transport people or goods from one place to another. This will usually be the head office, headquarters or ‘seat’ from which the business is run. This is the place where it’s liable to VAT (if any). This is relevant for determining which party must pay the VAT to the tax authority and the jurisdiction in which it must be paid. The new rules make some changes to the zero rating conditions . It also explains how to deal with supplies of services which you receive from outside the UK. In this case goods are lying in India even though legally it belongs to PQR Ltd USA. If you supply B2C services of arranging a supply which is supplied in an EU member state and your customer is not EU VAT registered or otherwise in business, you may be liable to register for VAT in that member state. This does not cover supplies of the letting on hire or leasing of goods where the services of an operator or technician are included. A ltd, Pune has a customer in Dubai XYZ Ltd and a supplier in Thailand B Ltd. Our findings are detected in all three major financing markets - equities, syndicated loans, and public debt - as well as for cross-border capital flows in M&A deals. Such goods will normally be treated as supplied where they are installed. The following are examples of services that are seen as being admission to an event: The following are examples of services that would not be seen as admission to an event: Services ancillary to admission are those that are supplied to a person attending an event for separate payment and are directly connected to the admission. Subject to certain conditions being met, a cross-border supply can be zero-rated as a supply in the member state of dispatch. services rules are changing (including the time of supply for cross-border supplies of services subject to the reverse charge). Examples included public payphones and charges for calls made from hotel rooms. If the extension means that it exceeds the 30 or 90 day period, the place of supply is determined by the long-term hire rule, unless it can be satisfactorily demonstrated that the circumstances leading to the events were outside the control of the parties involved. If there are multiple supplies each will need to be considered on its own. Intermediaries may be referred to as brokers, buying or selling agents, go-betweens, commissionaires or agents acting in their own name. A supply of goods agreement for use in a cross-border context drafted from the point of view of a supplier resident in the UK who is selling goods to a customer resident in another country. The most common forms of event are sports matches, theatrical or musical performances, conferences, exhibitions, seminars and trade shows. If, in anticipation of export to a place outside the UK or EU, you zero rate your supply under this item but, in the event, the goods are used in the UK or EU before export or export does not take place, you’ll need to reconsider both the place of supply of your services and, if it’s the UK, the appropriate VAT rate that applies. The establishment most closely connected with the supply is the business establishment in Germany. UNECE Standards have a. simple structure (standard format) with. This covers the letting on hire, or leasing, of all goods other than those which are a means of transport (see section 6). If there is any doubt in your mind you should confirm the position with your supplier. If you are unhappy with HMRC’s service, contact the person or office you’ve been dealing with and they’ll try to put things right. There are many place of supply rules for working out where services of different kinds are supplied, for example where the place of supply of services is: If you belong in the UK and the place of supply of your services is the UK, you must charge any UK VAT due and account for it to HMRC regardless of where your customer belongs. It extends from the Swedish city of Skellefteå to Kokkola in Finland, along the coastal territories forming a horseshoe shape the surrounding Gulf of Both-nia. Every month, we plan and manage more than 26,000 cross border shipments between the U.S., Mexico, and Canada. If your customer is unable to provide a VAT number you can accept alternative evidence. The invoices should avoid general or generic descriptions and make clear the nature of the services involved. A long-term hire of a pleasure boat put at the disposal of the customer anywhere other than where the supplier has an establishment, is treated as made where the customer belongs. The reverse charge is a simplification measure to avoid the need for suppliers to register in the member state where they supply their services. Examples of zero-rated intermediary services include: Examples of intermediary services that are not zero-rated include: Training services supplied in the UK to overseas governments for the purposes of their sovereign activities, that are not already exempt from VAT, see VAT on education and vocational training (Notice 701/30), can be zero-rated under an extra-statutory concession. If that second separate hire contract relates to a different means of transport or the terms of the hire differ significantly, the contracts will need to be considered separately. A service is normally regarded as being used and enjoyed where the customer consumes the service. This covers all banking, financial and insurance services. Duty free shop supplies are not Export under GST as per Delhi AAR ruling. The list of commitments below indicates the services sectors liberalised pursuant to Article 172 of this Agreement, and, by means of reservations, the market access and national treatment limitations that apply to services and services suppliers of the Republics of the Although day-to-day contact on routine administrative matters is between the supplier and the UK branch, it’s the Austrian establishment’s services that are being advertised. It also includes amusement parks, tours or visits around stately homes. Before the goods reached the Indian customs, it was sold to D, Mumbai by way of transfer of document of title to goods. Advertising services include all services of publicising another person’s name or products with a view to encouraging their sales. The service will be land related if, when installed or assembled, the goods become a fixture of the land or property that cannot be easily dismantled or moved. Since 1 January 2013 the place of supply of a B2C long-term hire of means of transport is made where the customer belongs, unless it is a long-term hire of a pleasure boat that is put at the disposal of the customer at an establishment of the supplier. What follows is a summary of the services covered by this provision. To decide whether goods that you hire are a means of transport you must consider the actual nature and design of the hired goods. Join our newsletter to stay updated on Taxation and Corporate Law. It applies if your supplier belongs outside the UK even if they have a UK VAT registration number. But, if the supply is made using the human and technical resource of a fixed establishment, or the supply is received for the needs of the fixed establishment rather than the business as a whole, then this will be the place most closely concerned with the supply. The new location in Zielona Góra, on the western border of the country, offers considerable strategic advantages for cross-border retailers. It does not have a permanent physical presence at the registered address and the day-to-day business is undertaken from the home address of the director. The French company also has a fixed establishment in the UK created by a branch. For information about registration see Notice 700/1: should I be registered for VAT?. 16.12 Export evidence you need. In this section, your customer is the person to whom you supply your intermediary services. But, elements of telecommunications services used in the UK were ignored if they were: The exception to this rule was that if a UK resident used telecommunications services outside the EU under such an account with a UK provider, those services were outside the scope of UK VAT, provided that evidence was retained to substantiate the element of use and enjoyment that occured outside the EU. If you receive a supply to which the reverse charge applies and yet your non-UK supplier issues a VAT invoice on a UK VAT registration, you must still apply the reverse charge as it is not an optional adjustment. This objective consideration applies even where the intended, or actual, use of the hired goods may not be as a means of transport. Rather than having to register with an EU member state where you sell to consumers, VAT MOSS allows you to register in one member state and account for VAT on all your B2C supplies of digital services across the EU electronically via a single calendar quarterly return. X Ltd in India receives order from PQR ltd USA for component supply. A person is not resident in a country where they’re only visiting as a tourist. For cross-border supplies of digital services, the place of supply will be the UK on or after 1 January 2019 if: Read the VAT rules for supplies of digital services for more information. A fixed establishment is an establishment other than the business establishment, which has the human and technical resources necessary for providing or receiving services permanently present. Examples of ancillary services would include the charges for the use of cloakroom or sanitary facilities. If you are supplying land related services then the provisions of paragraph 7.6 will apply. The reverse charge applies to almost all B2B supplies of services except exempt supplies. When a supplier uses employees to provide whatever service they are contracted to supply (under a contract for services) to a customer, it is not a supply of staff by the supplier but a supply of other services. If the place of supply is in the UK you need to consider the liability as some supplies of services may be zero-rated. This covers supplies of services which allow access to, and actual use of, the distribution networks. Cross-border e-commerce is becoming increasingly popular around the world. These are faster delivery, lower delivery- and return costs and lower costs for customer service regarding delivery in and from Poland. In order to submit a comment to this post, please write this code along with your comment: c8b1e27b6d84d2e9a65dfd5851fd92a3. VAT rules for supplies of digital services, VAT Mini One Stop Shop: register and use the service, VAT Notice 701/49: finance and securities, VAT on education and vocational training (Notice 701/30), VAT Notice 48: extra statutory concessions, VAT on goods exported from the UK (Notice 703), customerexperience.indirecttaxes@hmrc.gsi.gov.uk, How to fill in and submit your VAT Return (VAT Notice 700/12), Work out your place of supply of services for VAT rules, Domestic reverse charge procedure (VAT Notice 735), Coronavirus (COVID-19): guidance and support, Transparency and freedom of information releases, Services, including admission, linked to physical performance (for example, artistic, cultural, education and training, sporting, entertainment services, exhibitions, conferences, meetings), 2 or more separate contracts for the hire of the same means of transport follow each other with 2 days or less between them. See Claim back VAT paid in the EU if you’re established elsewhere (Notice 723A). Goods include all forms of moveable property but exclude land, property or equipment permanently installed. For both B2B and B2C supplies, the short-term hiring of a means of transport is treated as supplied where the vehicle is put at the disposal of the customer. CROSS-BORDER TRADE IN SERVICES. For B2B, only the charge for the admission to an event, and any services ancillary to admission, are taxed at the place of where the event takes place. To decide where a service is being used for private purposes, you should consider the nature of the services being provided. This checklist does not address issues arising from contracts with consumers. For the purposes of this rule, goods are all forms of tangible moveable property. The Isle of Man is treated as part of the UK for VAT purposes and VAT is chargeable in the Isle of Man (under Manx Law which generally parallels UK legislation). If you have any feedback about this notice please email: customerexperience.indirecttaxes@hmrc.gsi.gov.uk. Claim back VAT paid in the EU if you’re established elsewhere (Notice 723A), VAT Notice 700/2: group and divisional registration, Revenue and Customs Brief 18 (2015): VAT grouping rules and the Skandia judgement, VAT Notice 708: buildings and construction, Ships, aircraft and associated services (Notice 744C), VAT on freight transport and associated services (Notice 744B). As per Section 13(8)- POS in case of intermediary is place where the intermediary is located. For information about registration, see VAT Notice 700/1: should I be registered for VAT? Article 15.1: Definitions. The following are not means of transport: There are different rules for the place of supply of services of hiring out means of transport depending on who receives the supply and whether the hire is short-term or long-term. For example, a foreign company established under mode 3 in country A may employ nationals from country B (mode 4) to export services cross-border into countries B, C etc. The only B2B service taxable where performed is the admission to an event. All content is available under the Open Government Licence v3.0, except where otherwise stated, 2. Additional rules apply to B2C letting on hire of goods and radio and television broadcasting services (see section 13). a blender comprising a motor, blades and a food container) Cross border supply of elements of a patented invention 4 Contributory infringement European countries: Applicable provisions Territoriality requirements With one exception, B2C telecommunications services were subject to UK VAT when supplied to UK residents or used and enjoyed in the UK by visitors from countries outside the EU. The latter is not a supply of staff, even if you charge by the hour. The customer contracts to buy telecoms services through its Swiss branch, making all payments from there. The place of supply rules contain default or ‘general’ rules, one for supplies to business customers B2B and one for supplies to consumers B2C. This is neither import nor export since goods are not entering India. The relief does not apply if services are received for business purposes. As per section 16(2) of IGST Act, this supply will be treated as export (zero rated supply) even though it is exempt in India. For example, a customer may attend an educational seminar or class to learn about a subject. Where it applies to services which you receive, you, the customer, must act as if you are both the supplier and the recipient of the services. Don’t worry we won’t send you spam or share your email address with anyone. If you need general help with this notice or have another VAT question you should phone our VAT helpline or make a VAT enquiry online. Even if you make no taxable supplies yourself you may still be required to register if the value of general rule services received from overseas suppliers exceeds the registration thresholds. Copyright © TaxGuru. Work on goods for export from the UK and EU is zero-rated provided that all of the following conditions are met: If your supply is zero-rated in anticipation of export outside of the UK or EU but the good are not in fact exported, you will need to reconsider the liability and adjust the VAT. See section 11 of VAT Notice 725: the single market. GST to be charged @1%- NN-41/2017-IGST(R)– if conditions are fulfilled, Supply by E2 to ABC Ltd (Dubai)- Export of goods ITC eligible, As a part of their arrangement 5% value of goods sourced by A Ltd shall be paid. The partial exemption implications for reverse charge services are explained in Notice 706: partial exemption. In most cases this will be clear, such as a ticket to attend a football match or the theatre. If the place of supply of your services is outside the UK or EU you should not charge UK VAT but, as you may need to account for the local tax, you’ll need to consider the tax rules of the country into which you are making your supply. Unless you have information that suggests the service is wholly for private use, you may presume that your customer is in business if they provide you with their VAT number. From 1 st Feb 2019-Transaction in Sch III- neither supply of goods nor supply of services (Non-GST Supply) ITC is not required to be reversed- Explanation to Sec 17(2) & Sec 17(3) 5: X Ltd in India receives order from PQR ltd USA for component supply. Such services can only be subject to tax in that country. With the development of technology, competition has gradually shifted from commodity-based attributes, such as cost and quality, to a supply chain's service capacity for e-commerce. So goods didnt enter in india so No ITC has been taken by importer b”coz no goods crosses custom frontier of india. Services covered by this section are those that relate to an event or physical performance. The intention of con- A business may have several fixed establishments, which may include a branch or agency. Short-term hire means a continuous period not exceeding 90 days if the means of transport is a vessel and not exceeding 30 days for any other means of transport. If you’re not already registered in the UK, you may be liable to register. See VAT guide (Notice 700) and section 8 for more guidance on single or multiple supplies. For the purpose of determining the place of supply, land means any: This rule applies only to services which relate directly to a specific site of land or buildings, that is those services derived from land and where the land is a central and essential part of the service or where the service is intended to legally or physically alter a property. For example, a foreign company established under mode 3 in country A may employ nationals from country B (mode 4) to export services cross-border into countries B, C etc. Suppliers who belong outside the UK and whose customers account for UK VAT by means of the reverse charge or through MOSS, may be able to reclaim VAT incurred on UK costs. An example of this is where a guarantee of origin is issued to customers purchasing electricity that certifies the electricity was generated from renewable sources. It only applies where services are supplied in the UK by a supplier belonging overseas. If you supply telecommunications, broadcasting or electronically supplied services on a B2C basis you should refer to sections 14 and 15. Similarly, where a supply would be outside of the scope of EU VAT but is partially used and enjoyed within the UK, UK VAT will be due on that portion of the service that’s consumed here. 2009/571. It’s the nature of the service that you should consider, rather than your professional qualification or status. There is no VAT in the Channel Islands or Gibraltar, which are outside the UK and EU for VAT purposes. Once an individual has been granted leave or permission to remain in the UK, they belong in the UK, even if they overstay. Establishment most closely concerned with the supply, 6. produce specific tolerances. x Part 5 sets out the draft time of supply … If they are not VAT registered you’ll be liable to VAT in that country and may have to register there (see paragraph 5.9). Where you have establishments in more than one country, you’ll need to decide which one is most directly concerned with a supply (see section 4). Payments for these intellectual rights are often known as ‘royalties’. A company which has its business establishment overseas contracts with private individuals in the UK to provide information. Many, but not all, of these are exempt when made in the UK. If your contract is to supply standard goods, without any alteration to meet the specification of the client, which you are contracted to install or assemble, either by you or someone acting on your behalf, you are providing goods to which the installation service is ancillary and is therefore treated as a supply of goods, for example the supply of studio recording equipment, where the supply involves the installation of the equipment at the customer’s studio. There are additional rules for all hired goods (including any hire of means of transport) depending on where the supply is used and enjoyed, which if applicable will override these rules - see section 13. Examples of services that are land related include: Examples of services that are not directly land related include: If you belong in the UK and are a UK VAT-registered recipient of a service directly related to land (see paragraph 7.3 and paragraph 7.4) you are required to account for the reverse charge if your supplier belongs outside the UK (see section 5), even if they have a UK VAT registration. Under section 57(3) of that Act those amendments will come into force on such day as the Treasury may by regulations appoint. Unlike the general rule services, such supplies do not count as your taxable supplies for the purposes of determining whether you’re liable to be registered as a taxable person as described in paragraph 5.7. UK VAT grouping on its own does not cause this to happen. On the other hand, the extension of the flow-based market coupling project to Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia in the so-called Core region has been facing recurrent delays. You’ll need to indicate on your invoice that the supply is subject to the reverse charge and you’ll need to complete an entry on an EC Sales List with the value of the sales made and your customer’s registration number. This puts you in the same position as if you had received the supply from a UK supplier rather than from one outside the UK. You can change your cookie settings at any time. Payments for their services are often described as commission. A checklist of the main issues to be considered when drafting supply of goods agreements in a cross-border business to business context. See Insurance (Notice 701/36) and VAT Notice 701/49: finance. In such circumstances, provided your customer can demonstrate that they have business activities (such as by providing a VAT number), the place of supply is determined by where the customer belongs. VAT MOSS is an optional, simplified, way of declaring VAT on B2C supplies of digital services in EU member states where you are not established. Moreover, thanks to the integration of day-ahead markets, cross-border capacity was used efficiently during all hours on more than two thirds of EU borders. This will be the case even where the branch creates an internal charge to the business and other fixed establishments. You should take care to read the relevant sections in full and remember that lists of examples are not exhaustive. This is because the services are not for the needs of a specific branch. The se Parties shall enter into consultation s with a view to exchanging information on the operation of the measure and to considering whether further steps are necessary and appropriate . It does not matter how the services are delivered to a customer, which may be by electronic transmission, courier or mail. But the telecoms services are used by the customer at all of its branches throughout the EU. In export the basic requirement is that the goods must leave India. A Ltd, Maharashtra, importing oil from Singapore. If you cannot attribute the input tax due (because, for example, you make exempt supplies) the effect is to make you pay VAT on the supply at the UK rate. A B2B supply of the long-term hiring of means of transport is subject to the general rule for the place of supply of services and so supplied where the customer belongs. You’ll need to include the full title of this notice. This is where essential day-to-day decisions concerning the general management of the business are taken. B2B supplies means supplies made to businesses. This can be either the supplier or the recipient of the arranged supply (and in some cases may be both). If you belong in the UK but are not already UK VAT registered and you receive supplies of B2B general rule services from overseas suppliers (that are treated as supplied where the recipient belongs), the value of those supplies must be added to the value of your own taxable supplies when determining whether you should be registered for UK VAT. May 2016. At one point, truck crossings over the Detroit-Windsor Ambassador Bridge, the border's busiest land crossing point, were down by 43%. make supplies of services to customers outside the UK, receive services from suppliers that belong outside the UK, belong outside the UK and have customers in the UK, section 7A of the VAT Act covers the general rule for business to business (, section 8 of the VAT Act covers the accounting mechanism for supplies received from outside the UK and EU - the ‘reverse charge’ procedure - see, section 9 of the VAT Act covers where a person is regarded as belonging for VAT purposes - see, schedule 3B of the VAT Act covers the special scheme for non-EU suppliers of digital services within the non-Union VAT Mini One Stop Shop (VAT, schedule 3BA of the VAT Act covers the Union VAT, schedule 4A of the VAT Act covers the rules for specific types of services - see the table in, schedule 6 paragraph 8 of the VAT Act covers the valuation of services within the reverse charge procedure - see, schedule 8 group 7 of the VAT Act covers the zero rating provisions for international services - see, the zero rating of certain intermediary services, in the UK or a member state of the EU, that supply is subject to the VAT rules of that member state and not those of any other country – member state supplies are said to be ‘outside the scope’ of UK VAT, outside the UK or EU, that supply is made outside the UK or EU and is therefore not liable to VAT in any member state (although local taxes may apply), such supplies are said to be ‘outside the scope’ of both UK and EU VAT, charity, government department or other body which has no business activities, ‘person’ (natural or legal) who receives a supply of services wholly for a private purpose, supplies made outside the UK which would be taxable if they were made in the UK, supplies of certain insurance, financial, and other exempt services made to a person outside the UK (‘specified supplies’), see, a business establishment in the UK and no fixed establishment elsewhere that’s more closely connected with the supply, a business establishment outside the UK and a fixed establishment in the UK that’s most directly connected with the supply, no business or fixed establishment anywhere, but your usual place of residence is the UK, an overseas business that sets up a branch comprising staff and offices in the UK to provide services - the UK branch is a fixed establishment, a company with a business establishment overseas that owns a property in the UK which it leases to tenants - the property does not in itself create a fixed establishment, but, if the company has UK offices and staff or appoints a UK agent or representative (such as a subsidiary company acting on their instructions) to carry on its business, this creates a fixed establishment in the UK, an overseas business has contracts with UK customers to provide services; it has no human or technical resources in the UK and therefore sets up a UK subsidiary to act in its name to provide those services - the overseas business has a fixed establishment in the UK created by the agency of the subsidiary, a UK company that acts as the operating member of a consortium for offshore exploitation of oil or gas using a fixed production platform - the rig is a fixed establishment of the operating member, an overseas company that registers or is incorporated at its accountant’s address but has no other offices or staff in the accountant’s country, an overseas television company that sends staff and camera equipment to the UK for a week to shoot a documentary before returning home, a team of builders and contractors that are temporarily in the UK to carry out a one-off construction project, the presence of computer servers alone within a country, the existence of a UK VAT registration without any supporting resources in the UK, a person who lives in the UK, but commutes to Ireland daily for work, belongs in the UK, overseas forces personnel on a tour of duty in the UK live in rented accommodation with their families and have homes overseas to which they periodically return to on leave - they belong in the UK throughout their tour of duty, obvious use of your services at a particular establishment (for example, the lease of equipment for use at that establishment), taking your instructions from a particular establishment, the service relating to business being conducted by your customer in an establishment in a particular country (such as written reports or accounts), making any supplies of goods or services to a particular establishment, the supply is not exempt (this includes exempt supplies subject to an option to tax), for supplies not within the general rule, you’re VAT registered in the UK, amount of output tax in box 1 (VAT due on sales), amount of input tax in box 4 (VAT reclaimed on purchases), full value of the supply in box 6 (total value of sales), full value of the supply in box 7 (total value of purchases), a supply of legal services from a French business (, services relating to land and property (except opted supplies of land) (see, restaurant and catering services, admission to an event and work on goods (see, services that are treated as supplied in the UK as a result of the use and enjoyment provisions (see, specific part of the earth, on, above or below its surface, over which title or possession can be created, building or structure fixed to or in the ground above or below sea level which cannot be easily dismantled or moved, item making up part of a building or construction and without which it is incomplete (such as doors, windows, roofs, staircases and lifts), item, equipment or machine permanently installed in a building or construction which cannot be moved without destroying or altering the building or construction, construction or demolition of a building or permanent structure (such as pipelines for gas, water or sewage), valuing property, including for insurance or loan purposes, even if carried out remotely, providing accommodation in hotels, holiday camps, camping sites or timeshare accommodation, maintenance, renovation and repair of a building (including work such as cleaning and decorating) or permanent structure, property management services carried out on behalf of the owner (but not the management of a property investment portfolio), arranging the sale or lease of land or property, drawing up of plans for a building or part of a building designated for a particular site, services relating to the obtaining of planning consent for a specific site, on-site security services, even if provided remotely, agricultural work on land (including tillage, sowing, watering and fertilization), installation and assembly of machines which, when installed, will form a fixture of the property that cannot be easily dismantled or moved, the granting of rights to use all or part of a property (such as fishing or hunting rights and access to airport lounges), legal services such as conveyancing and drawing up of contracts of sale or leases, including title searches and other due diligence on a specific property, the supply of space for the use of advertising bill boards - for example the leasing of a plot of land or the side of a building to allow a billboard to be erected, the supply of plant and equipment together with an operator, where the supplier has responsibility for the execution of the work to the land or property, the supply of specific stand space at an exhibition or fair without any related services, drawing up of plans for a building or part of a building that do not relate to a particular site, arranging the supply of hotel accommodation or similar services, installation, assembly, repair or maintenance of machines or equipment which are not, and do not become, part of the building, management of a property investment portfolio, accountancy or tax advice, even when that relates to tax on rental income, the supply of storage of goods in property without a right to a specific area for the exclusive use of the customer, advertising services including those that involve the use of a billboard, marketing, photography and public relations, the supply of equipment with an operator, where it can be shown that the supplier has no responsibility for the performance of the work, general legal advice on contractual terms, legal services connected with fund raising for property acquisitions or in connection with the sale of shares in a company or units in a unit trust which owns land, stand space at an exhibition or conference when supplied as part of a package with related services that enable the exhibitor to promote their goods or services (for example design, security, power, telecommunications, and so on), ships, boats, yachts, hovercraft and barges, aircraft (including gliders, hot air balloons and helicopters), vehicles designed for the transport of sick or injured persons, agricultural tractors and other agricultural vehicles, mechanically or electronically propelled mobility scooters, a payment for the right to enter and visit a trade show, a short-term educational conference or seminar, the hire of a corporate box at a sport event (such as a cricket or rugby match), the supply of a stand with the right to exhibit at a trade show or exhibition, the supply of an educational course, with either ongoing attendance or significant course work, the supply of organising a conference or exhibition, including where an event is put on for a single customer, the supply by a singer to a promoter of appearing at a concert, a singer performing at a wedding or party, the entrance fee into a sporting competition, wedding or party planning that includes attendance at the event, alterations, calibrations, insulating, lacquering, painting, polishing, resetting (of jewellery), sharpening, varnishing, waterproofing, nominations to stallions, covering (that is, attempting to secure the pregnancy of mares), work which is not mainly physical work performed on the goods themselves, for example inspection for a purpose other than valuation, testing and analysis of goods - the physical work simply provides data for the required analysis, valuation of, or work carried out on, land or property, those services are included in the list in, transfers and assignments of copyright, patents, licences, trademarks and similar rights, acceptance of any obligation to refrain from pursuing or exercising a business activity, services of consultants, engineers, consultancy bureaux, lawyers, accountants, and other similar services - data processing and provision of information, other than any services relating to land, banking, financial and insurance services, the provision of access to, or transmission or distribution through, natural gas and electricity systems and heat or cooling networks and the provision of other directly linked services, letting on hire of goods other than means of transport, granting of a right for photographs to be published in a magazine article, including material which is digitally downloaded to the customer, individual shares in goods, for example an animal or yacht, even though certain rights may be included in the supply, a right to obtain reduced rates for admission to conferences and meetings as well as similar discounts on facilities available to members of clubs, associations or societies in return for a subscription, the right to occupy land or property including hotel accommodation (see, written translation services or interpreters’ services which do not take place at an event conference, design or consultancy services by engineers who generally, but not always, possess formal qualifications - the services must be of a type expected of an expert or professional, legal and accountancy services in the general administration or winding up of a deceased’s estate, even if that estate includes land or property; such supplies are not made to beneficiaries but to the estate - this is seen as whoever is appointed executor or administrator, although they may also be a beneficiary, architects’ services where there is no specific site of land, information supplied by a private enquiry agent, services of lawyers, surveyors and consultants where these directly relate to a specific piece of land or property, services carried out by an engineer which consist wholly or mainly of physical work on goods, including installation of goods, management, clerical or secretarial services, which includes the keeping of financial records, unless the essential nature of the service falls within the services provided by a consultant, lawyer, engineer as described, the letting on hire of goods (including means of transport), repairs to goods under an insurance claim (, radio and television broadcasting services, the UK but the services are effectively used and enjoyed outside the EU, outside the EU but the services are effectively used and enjoyed in the UK, are a business and purchase downloaded information over the internet for use at a specific site, a Canadian company hires out recording equipment to a UK private individual who uses the equipment in his UK home; the place of supply is the UK - this is because the goods are used and enjoyed in the UK and the place of supply would otherwise have been outside the UK or EU, an Australian tourist hires a video camera from a UK provider during a visit to the UK - the place of supply is the UK - this is because the goods are used and enjoyed in the UK and the place of supply would otherwise have been outside the UK and EU, a UK golf shop hires out a set of golf clubs to a UK customer for use on a holiday in the, an individual hires a yacht which is put at his disposal in the Channel Islands - the vessel is sailed to the UK where it spends 21 days of the 28 hire - as the means of transport is effectively used and enjoyed in the UK for 3 of the 4 weeks that it’s supplied, UK VAT is due on this percentage of the hire, a UK based airline hires a small passenger aircraft on a 6 month lease - the aircraft is used exclusively on a route flying between 2 cities in the, a UK business purchases downloaded information from another UK business for use both in its UK headquarters and its Canadian branch - although the supply is received in the UK, to the extent it’s used in Canada, it is outside the scope of UK VAT - UK VAT is due only to the extent of use by the UK headquarters, a UK business rents telecommunication capacity to connect it to an overseas third party call centre provider, this allows data to be transferred between the 2 in the furtherance of the UK business’s activities - the place of supply is the UK as this is where the recipient of the service is consuming the supply, a UK garage repairs a car as a result of a claim made by a UK insured person under a contract with a Gibraltarian insure - the work is performed in the UK and the car is registered for use in the UK - the service discharges the insurer’s obligation to the insured party for a vehicle to be used in the UK - the place of the supply of the repairs is the UK, simply an incidental part of an established telephone contract or account held by a customer who belonged outside the EU, HMRC was satisfied that these conditions were not being abused, your business is not established in an EU member state, the total value of the cross-border digital sales is less than £8,818 in the current year and previous calendar year, training performed for overseas governments, the export of any goods to a place outside the UK and EU member states, a supply of services which is itself zero-rated as work on goods for export from the UK or EU, any supply of services which is made outside the UK or member states, arranging an order for an overseas buyer to purchase UK goods that are exported from the EU - you must obtain valid evidence of export, arranging for a person in the UK to provide a repair service on goods that are imported into the UK and EU and then re-exported once the work has been carried out, arranging a consultancy service for a UK business, to be provided to a Canadian customer - this is because the place of supply of the consultancy service is outside the UK and EU and so you are making arrangement for a supply outside of the UK and EU, the making of arrangements for the supply of exempt insurance or finance - for more information on this see, the making of arrangements for a supply of freight transport - but, it may be eligible for zero rating under a different provision, see, services supplied by a person acting as a principal, even if their trading title or classification includes the word ‘agent’ or ‘agency’, acting as an intermediary in arranging a supply of services within the UK and EU, arranging for a supply of goods which are supplied within the EU, and those goods remain in the EU, the services must be used by the foreign or overseas government for the furtherance of its sovereign activities (that is not for business purposes), you must obtain and keep a written statement from the foreign or overseas government concerned, or its accredited representative, certifying that the trainees are employed in furtherance of its sovereign activities, similar bodies answerable to the government concerned, the goods on which the work is to be carried out must have been obtained, acquired within, or imported into the UK or EU for the purposes of being worked on, the goods must not be used in the UK between the time of leaving the supplier’s premises and exportation, on completion of the work, the goods are intended to be and, in fact are, exported from the UK or EU by either, the supplier of the service (or someone acting on their behalf), the customer (or someone acting on their behalf), if the customer belongs outside the UK or EU, alterations and repairs, calibrations, cleaning, insulating, lacquering, painting, polishing, resetting (jewellery), cutting (of precious stones), sharpening, varnishing and waterproofing, services relating directly to the ‘covering’ (that is, attempting to secure the pregnancy) of a mare, provided the mare is exported before the birth of the foal, gelding or breaking in of young horses (for example training yearling racehorses to the stage where they can be ridden safely in races) - but, actual racing is not accepted as training and if any horse is acquired or temporarily imported with the intention of racing it in the EU before re-export, zero rating will not apply, work which is not physical work carried out on the goods themselves (for example, mere inspection of goods or testing and analysis of goods is not ‘work on goods’), repair or other work which becomes necessary in the UK and EU after acquisition or importation of goods, such as incidental running repairs, while the goods are being used (even though they may be subsequently exported).

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cross border supply section